My alergic to numbers brain cells are having a meltdown this week end. Trying to keep up with mom & her banking/investment business, the meetings where people are explaining stuff to her (and to me) are making smoke come out my ears! I truly do think I have a learning disability when it comes to math. Is that possible???
I was with mom when she decided to take half of an account in an anuity fund and buy bonds with it, thus the A shares. Then, another of her investment people called and said......No, you shouldn't do A shares....let me come explain why. He touts C shares & told mom to call the bank and "bust the deal". Now, doesn't that just sound like something my 85 year old mother is going to do??? Well, she made the phone call, but had to leave a message on voice mail. Monday should be show down day between the two firms......with my mom in the middle and me just barely being able to follow the action.
I'm not the one to be giving mom advice, she has done just fine on her own over the decades, but I do believe I side with the C share guy.
Besides the money dilema here, we have had a great week end. The electrician has begun work on the rental house, we have purchased all the new fixtures & can see inside now. We sent the potential tenant our version of what we can and can't do. (thank you to all who have been brainstorming with me on this one) We are going to: go with the 2 year lease, give 2 months free rent for his labor & materials on the work list and we are paying for the electrical. We aren't going to: put a 10% cap on an increase after 2 years and we aren't going to give him reduced rent after 2 months of no rent. We are not going to allow him to sublet the space to other professionals to share the office, without renegotiating the lease, which would mean they would be paying for this house at commercial rates, by the square foot.
I'm expecting we have just ended the negotiations with this gentleman, but he could surprise me. We are OK with it if he decides we're too expensive. I think the property can pull in twice what we were asking. It has set vacant since Oct of last year, there is no mortage on it, just taxes, so mom is fine with continuing the search.
Have my week end young man with us this week. We packed picnic lunches and took off for a local beach park today. Very nice day. Sold a book on Amazon and got the funds for a Pinecone survey. Not a bad way to finish off the day.
A shares vs. C shares ???????
June 17th, 2007 at 04:34 am
June 17th, 2007 at 10:59 am 1182077940
June 17th, 2007 at 01:09 pm 1182085799
June 17th, 2007 at 09:56 pm 1182117369
September 8th, 2009 at 03:52 pm 1252425124
If it was you making the decision I'd say go with the B shares where you pay the sales charge over time then the funds get converted into A shares.
For your mother go with the A shares pay the sales charge upfront and be done with it.
However, keep track of your investments because its a rare day to find an advisor that will keep track for you.
July 8th, 2010 at 08:40 pm 1278621639