
11-04-2010, 12:03 PM
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New Investor
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Join Date: Nov 2010
Posts: 1
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Investment options
My parents have set up a trust that earns royalty income throughout the year and stipulates must be paid out to us kids at the end of each year. The last couple years this amounts to about $120,000 each year. However, the trust only invests in money market instruments throughout the year and last year the total interest earned was $55. That seems extremely low for an average of $60K sitting in the account (it builds up at $10K/mo until paid out at year end).
Would it be a better idea to put this money into some other investment while it sits in the trust? I am just "assuming" the trust officer would be trying to earn the best return for the money, while still being safe and maintain somewhat short-term liquidity in order to payout at the end of the year, but again, $55. Really?
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