I want to set up a trust account for my one year old grandchild and place $250K into it to allow distributions be given to him for the rest of his life. How does the bank invest my money to ensure that this money grows safely over the years for my grandchild to be able to get a monthly income for the rest of his/her life? I guess I am asking what investment strategies does a trust office use to make sure my money earns a safe return, but also a maximum return in today's economy.
Go to speak with the bank's trust department representative to explain your goal and then ask about the investment strategies the department would use if you placed the account there. Each trust department will have its own specific plans for an account of this type, but each will have to create a balance between safety of the investment and yield. As you might imagine, you should not expect an aggressive investment strategy that might involve added income at the expense of imprudent risk.
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Go to speak with the bank's trust department representative to explain your goal and then ask about the investment strategies the department would use if you placed the account there. Each trust department will have its own specific plans for an account of this type, but each will have to create a balance between safety of the investment and yield. As you might imagine, you should not expect an aggressive investment strategy that might involve added income at the expense of imprudent risk. 