He is 38 years old male and keeps his money in ING direct bank and makes about 4.6% interest. Can he make better rates or any other investment plan that he can use to make a good positive cash flow every month?
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Investment advisors will interest to make money from him. Tell him to leave his money in Swiss account and he will get at least 10% interest without any fees or commision.
there are lots of things he can do but here is not the place to get advice on almost 1/2 million dollars. tell him to visit a financial advisor (not one in a bank or a small shop) tell him to go to a large firm and see an advisor.
I agree with the first answer. I would add, look for an adviser that will TEACH him to understand his own choices. Do not look for someone to make the choices for him.
Zopa.com have launched recently in the US, having had success in the UK. They are a lending and borrowing exchange where individuals of good credit rating can borrow money directly from investors, cutting out the banks and middle men. You can choose who you lend to, for how long, and what rates you lend at. I’m in the UK, and have been getting 7.5%-11% from this, where a normal savings account would be between 5%-6.5%. You can get the interest and repayment capital paid straight back to you, providing the good cash flow required, or you can reinvest and take advantage of compound interest.
Personally, I would never recommend putting all your money in one place, but I would encourage you to consider Zopa as an interesting and fun way of diversifying from other investments.
In the UK if you apply via the following link, there’s a special offer and you get a complimentary £30 if you lend more than £500. If you’re in the US, it will automatically redirect you, and you may find a similar offer is available.
http://www.zopa.com/member/The%20Hulk
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If he invests by laddering in tax free municipal bonds, the interest is not subject to federal and/or state income tax, which means he keeps ALL of the interest not just 3%. It also prevents him from bumping into higher brackets and is safe. if the Fed cuts rates, those bonds will go up in value too.
Laddering means buying bonds that mature in varying years to take advantage of changes in interest rates.