Early Retirement Advisor Pens Seeking Alpha Article

Early Retirement Advisor (AKA kaptain lou) has penned a new article of Seeking Alpha.

ERA had previously brought us the U-haul Investors Club which we have written on in the past here–disclosure–we (wife and I have IRA accounts with U-Haul).

In the new article ERA covers a couple of alternative investments to money markets and CDs. I have not personally looked at all the details of these alternatives, but I will be checking them out closer.

ERA’s article on Seeking Alpha can be found here.

We will add this link to the Education Items page.

23 thoughts on “Early Retirement Advisor Pens Seeking Alpha Article”

  1. I have a question about the U-Haul investors club. I’ve been looking around on the website, and scanned through most of the prospectus, but not finding the specific information. Say I invest $5000 in the 2 year, 3% notes. They state that I can reinvest my interest in additional notes. What notes does that money get reinvested in? The 3% is almost fully funded. Does it just default to the next offering?

    When they make a payment to my account, can I have that whole payment reinvested; in effect perpetually reinvesting my initial $5000? Same as above, where does that money get reinvested?

    Thanks in advance.

    1. Mark in CO – UIC makes quarterly payments of principle and interest on your notes with them. When paid to you, they are placed in your “cash” account and you will have to manually purchase another note.

      Yes, the two year 3% note is almost fully funded as of today. However, every Tuesday around 5 p.m. EST, they update the notes and new investments are offered. Sometimes there are very little changes and some weeks there are multiple new offerings posted. When I have extra cash in my account, I normally login Tuesday evening to see if there are any new offerings that interest me.

      Hope this information was helpful.

      1. Thanks kaptain lou,

        Not sure how I misread that. I looked right at that part of the FAQ… I’ll blame it on a lack of coffee. Ha.

        I see the 4.5%, 8 year notes are only at about 2.5% funded. Say I buy those notes. Assuming it takes a while for those to fully fund, I guess I would be able to “reinvest’ in those notes? Or, is every offering a new, full term loan?

        Once invested, are subsequent investments limited to $100 increments? Or, can I invest the whole $187 that I would receive on $5000 in the 4.5% notes? It just says minimum increment is $100.

        As a non-member, am I seeing everything you see as far as their investment opportunities?

        Thanks again.

        1. If you buy the 8 year notes, you will start earning interest on those when the offering closes on Tuesday evening. Even if not fully funded, offerings always close on Tuesdays. Since they pay quarterly, your first payment will arrive in about 90 days. Once you have additional cash in the account, you can buy any of the current list of offerings. Notes must always be purchased in $100 increments, so you would need an additional $13 if you wanted to purchase $200 of new notes. Yes, non-members see the same information as people currently holding notes.

      2. Looks like these notes are callable. “We reserve the right to pay back any note at any time”. though it doesn’t seem like much disadvantage to the investor who was getting the higher long term rate.

  2. Thanks for mentioning my article Tim. For us fixed income investors here, many quality preferred issues continue to be called and I can’t really see myself replacing them with perpetual preferreds that yield under 5%. While I doubt if these securities will default, but they could be trading at $20 per share a few years from now if interest rates would increase. Therefore, I’m just looking at a few places to “Stash My Cash” until I can find replacement issues at reasonable prices.

    The Dominion Energy Reliability Income investment looks very interesting, as long as people understand they are investing in ultra-short corporate bonds. Check writing ability from the account, so it is a very liquid investment. It appears they “borrowed” this idea from Duke, as the programs are almost identical.

      1. Tim, this article has been in the works for months and am not quite sure why it took me so long to write again. Last tax season, I was checking tax returns and had a client that had $240,000 in a money market account at a local credit union. It was yielding .40%, so they were going to get about $1,000 of interest income on the account.

        I’m not one of those people on SA that write articles, just so people can subscribe to an online newsletter that will cost them $40 per month. Just here to help the small investor make better decisions. Always appreciate the work you do for this website.

  3. For those living in MN, there is a credit union (Members Cooperative CU) offering pretty generous CD rates in the 2–2.9 range.

    I don’t have an account with them but I’m tempted to open one up.

  4. Tim, thanks for letting us know.
    kaptain, thanks for your SA article and all your contributions here in III. I will have to read your earlier SA articles as well.
    Thanks and BR, No. 12

  5. This comes from someone whom I believe is a lurker on this site – is this a fairly well known site??? It summarizes what it sees on special offers to open bank accounts and credit card accounts where if you’re willing to jump thru the hoops which are not very big you can achieve similar short term deals. Many of the bank offerings provide cash bonuses for doing nothing more than opening an account and keeping the cash in for only 90 days.. After 91 days, close the account and keep the bonus. Thanks Mark G.

      1. inspbudget
        I just emailed TDAM about their bonus plan.
        I trf my IRA to them in October and deposited enough to my taxable acct as well to qualify for $300 and $100 , if the bonus covers that time period.

        I await their response.
        If i get the bonus, Lunch is on me

      2. Thanks for this Article makes a lot of sense. If invested in that bond being one step below investment grade, I would think you would have to plan to hold it to maturity.

    1. DoC is by far the best and most highly regarded of the sites that write about bank account and credit card bonuses. Unlike most other sites, they do not uses affiliate links so they are completely unbiased. I think the average reader there is about 40 years younger than here lol

      1. ha–yes 730Cap–most sites are about 40 years younger in demographic–thats what makes you all the best.

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