Too good to be true?

[pmart]

New guy here. Hopefully I'm posting in the right place.

I spoke with a friend of mine who had just returned from a meeting with his financial advisor. The product that the FA described to my friend is:

-100% liquid
-Earning 6.5 to 7% with a history of not dropping below 6.5% for the past 5 years.
-Consists of investments in government securities and corporate bonds
-Pays monthly dividends with the option to receive or reinvest
-costs only half of 1%

Is my freind confused? I asked some senior FAs I know and they didn't know what I was talking about. Any ideas?

Thank you...

[OffshoreCompanyFormation]

What was your freinds prupose to visit the bank and have the meeting with the FA ?

[pboot]

It could be municipal bonds but there is definitely something his advisor is not telling him. He should ask exactly what type of bonds these are (Fed, Municipal, Corp), and that is the only way to find out if this is legit or if he was maybe just confused.