Investments that Make Money

[mercee]

My mother-in-law is looking to do something with her money that will make guaranteed money. She came home from the bank with papers on Symetra Successor Single Premium Life Insurance and Western-Southern Life Assurance Company MultiRate Single Premium Deferred Annuity. I admit, I know nothing about this type of investing so came to the experts (that's you all!) for advice. Any thoughts / comments regarding either of these items?

She is risk-adverse - per hubby, she doesn't want anything that will lose money - she wants to use her money (unknown to me amount) to make money only. She seems to like the two things that were presented to her since she would not lose her principal, but wanted our thoughts on them (as she knows little to nothing about investing, CDs, IRAs, etc). As I pointed out to hubby, doesn't appear that she's guaranteed to make any money on either of these, just that her "initial investment" is guaranteed (though I'm not confident of that either) - she could invest $10k & the heirs would only get back out $10k years down the road.

The guaranteed interest on the Western-Southern (assuming $100k premium & 3 yr guarantee period) is 2.6% for first year & 1.6% remaining guarantee period & 1% after guarantee period (minimum).

The Symetra papers show premium amount of $30k and insurance amt of $40k (traditional nicotine) & $48.8k (preferred nicotine).

I'm leaning towards talking to her about just opening CDs as they're the only thing that I'm aware of that she's guaranteed to make (some) money & not lose any.

Thoughts / comments / suggestions??

[The Virginian]

My own mother always invested in Annuities.

They are safe but I am with you, I would just ladder some CD's. I know Navy Federal Credit Union pays up to 3% for Certificates ( Their name for CD's). It is easy to qualify as a member and they are federally insured. I would spread it out into different terms so if (when) rates go up she can re-invest them into higher rates.

[beenherebefore]

The only safe way to go is CD's and she needs to make sure the amount doesn't exceed the FDIC insurance value, per bank.