Safe deposit boxes at banks

[MacMadame]

Oh, I agree with you, and knowing the lengthy and complicated procedures that have to be gone through to drill a box, I'm a bit surprised that such a thing could happen. Maybe the US banking regulations that govern such things (I'm assuming this happened in the US) are far looser than the ones in Canada and other countries?

It's because they drilled the wrong box. They probably did go through a bunch of steps... for the correct box.

[Skittl1321]

A ten- or fifteen-year CD will earn you a tidy pile of interest.

Eh, not really. Rates are utter crap right now...

But still a MUCH better idea then letting it sit in a deposit box.

[Garden Kitty]

Put it in CDs and money markets if you don't trust higher-risk investments or don't think an IRA is worth it at this point. A ten- or fifteen-year CD will earn you a tidy pile of interest.

I wouldn't put it all in one CD. I'd try to split the money and build a CD ladder, putting an equal portion into a new CD over a series of years or at least 6 months. This allows you to diversify the interest risk, and gives you cash that is always coming due so you don't need to break a cd if you need cash. It would also give you a chance to split the money among a few banks if you want to diversify your investment risk even further.

Until invested in cd's, I'd keep the rest in an insured savings account(s) and make sure you're below the insured limit.

[numbers123]

This is an odd question, I know. I have some money stashed away in a safe deposit box at my bank. I've only made one deposit, it's my life savings actually. I don't want to invest because my SIMPLE plan at work has actually lost money in recent quarters. I will be retirement age in about 15 years or so.

15 years is a long time in investment history.

I was extremely distraught over my 401 accounts about 24 months ago as it had dropped to 2/3's of its original deposit. I asked for a new financial planner, we restored the amount to the original deposit and it has stayed fairly stable even given the downturn of the market in the past months. And that is in spite of paying management fees. I am on a medium risk plan and planning on "real retirement" in 7 years (I am currently and plan to continue to be a stay at home grandma).

I echo everyone's concern about keeping it in cash.

[danceronice]

Eh, not really. Rates are utter crap right now...

But still a MUCH better idea then letting it sit in a deposit box.

It would get you a lot more than a savings or checking account and obviously ANYTHING is more than what you get in a safe-deposit box. Heck, buying gold would be a more productive use.

I wouldn't do it, but I'm in higher risk and longer term stuff.

[cruisin]

How about "have a will detailing how everything, cash or otherwise, is to be divided, supervised by a non-related executor?"

There is no reason not to have a related executor. A will is a will and must be enforced to the letter. When someone passes, the executor doesn't have the option to carry out the parts of the will they choose. A will MUST be probated. That means that you must bring it to the courthouse (in the county the person lived in), along with an official death certificate. The court, then, issues the executor a letter of surrogacy. Only then can a will be executed. The court, also, expects copies of each beneficiary's letter advising of the will's probate, and a copy of each beneficiary's refunding bond. The refunding bond is a signed letter acknowledging receipt of the inheritance. All beneficiaries must receive their inheritance within one year of probate (unless there is some documented, legitimate reason that the money/property cannot be distributed within that time frame). So, it would be very difficult for a will to be manipulated.

I executed both of my parent's wills. It is not a job anyone wants. It is painful, and exhausting.

I wouldn't put it all in one CD. I'd try to split the money and build a CD ladder, putting an equal portion into a new CD over a series of years or at least 6 months. This allows you to diversify the interest risk, and gives you cash that is always coming due so you don't need to break a cd if you need cash. It would also give you a chance to split the money among a few banks if you want to diversify your investment risk even further.

Until invested in cd's, I'd keep the rest in an insured savings account(s) and make sure you're below the insured limit.

I would add that "one up" CDs are a good option. They allow you to "up" the interest rate one time (during the term of the CD) if the rates go up.

[danceronice]

There is no reason not to have a related executor. [snip a bunch of stuff I know because my father is a probate attorney]

I executed both of my parent's wills. It is not a job anyone wants. It is painful, and exhausting.

My point being if there IS going to be complaining, appoint a nonrelated non-heir because they have no dogs in the fight and it will hopefully, though not always, get the complainers to shut up. It at least takes away the "mom/dad/whoever liked you best" argument. (And means the executor can walk away at the end and not have to listen to the bitching once everything's done.)

[cruisin]

My point being if there IS going to be complaining, appoint a nonrelated non-heir because they have no dogs in the fight and it will hopefully, though not always, get the complainers to shut up. It at least takes away the "mom/dad/whoever liked you best" argument. (And means the executor can walk away at the end and not have to listen to the bitching once everything's done.)

Ah, in my case, my brother and I were named co-executors. Since both of my parents lived in the same county I do (they were divorced), and my brother lives an hour and a half away. He relinquished his executorship. He didn't want to deal with having to travel to handle the responsibilities - court, selling the house, gavin to co-sign things. But, we are lucky, in that, he trusts me and I am neurotically fair. We did have one of my husband's partners (my husband doesn't handle estates) go over each will with us. But, I did 98% of the work. The lawyer only handled the official paperwork, letters, etc. As far as who liked who best? My parents loved us both equally, but my Dad and I got along better and my brother and my Mom got along better. Normal, I think .

[sk8pics]

My point being if there IS going to be complaining, appoint a nonrelated non-heir because they have no dogs in the fight and it will hopefully, though not always, get the complainers to shut up. It at least takes away the "mom/dad/whoever liked you best" argument. (And means the executor can walk away at the end and not have to listen to the bitching once everything's done.)

I'm the executor for a married couple who are friends of mine, for just this reason. My friend said she knew I wouldn't put up with any crap from her family. But I do hope I never have to honor this agreement....

[antmanb]

What's a CD?

[milanessa]

What's a CD?

Certificate of deposit - you agree to leave your money with the bank for x amount of time and the interest rate is better than a savings account. There's a penalty for withdrawing it earlier than the initial agreement.

[antmanb]

Certificate of deposit - you agree to leave your money with the bank for x amount of time and the interest rate is better than a savings account. There's a penalty for withdrawing it earlier than the initial agreement.

Thanks for the clarification, I couldn't, for the life of me, work out what it might stand for!