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Ask Dave

Demand Note Dud

Eric wonders if a demand note is a good investment. Dave laughs at this one.

QUESTION: Eric’s parents asked him about demand notes from GMAC. Does Dave know anything about them in terms of using them to diversify their investment portfolio? Dave has a good laugh with the absurdity of this.

ANSWER: A note is a debt. Would you like General Motors owing you money now? Whoever is pitching this to them, your parents need to run away! This sounds like a financial planner on crack. No way I’m doing this deal. No, no, no, no!