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I'm talking over $5million. You don't want "financial advisors" sticking their noses and hands into your money since you already know what you're going to do with it. Big problem is, FDIC only covers $250K. TOTAL... so even if you have 10 accounts at one bank with $250K in each one, you'll only be covered for $250K in the event something happens. So, what do you do? Do you spread this money out over several banks?
Let's assume you know what you're talking about (although that seems unlikely from your post, sorry to be blunt). And you are going to move your $5 million fairly soon into something permanent. So what you're asking is how do you store it until you move it?
1) Don't store it for long.
2) Just put it in a big, well-capped bank that has -zero- chance of failing in the next 30-60 days. Which is pretty much every big bank in this country. This ain't 2009 is it?
3) You don't put it in a CD, you just put it in a std commercial account. No interest, no fail, no fees.
Then move it ASAP.
This is one of those, if you have to ask you can't afford it, kinda questions.
I'm talking over $5million. You don't want "financial advisors" sticking their noses and hands into your money since you already know what you're going to do with it. Big problem is, FDIC only covers $250K. TOTAL... so even if you have 10 accounts at one bank with $250K in each one, you'll only be covered for $250K in the event something happens. So, what do you do? Do you spread this money out over several banks?
Oh, geez. If you have $5M, you shouldn't be putting all of your money in banks, for heaven's sake!
I'm talking over $5million. You don't want "financial advisors" sticking their noses and hands into your money since you already know what you're going to do with it. Big problem is, FDIC only covers $250K. TOTAL... so even if you have 10 accounts at one bank with $250K in each one, you'll only be covered for $250K in the event something happens. So, what do you do? Do you spread this money out over several banks?
Accelerate your children's inheritance. Send them to NYC private schools and private liberal arts colleges (ie Sarah Lawrence).
Looks like you need a financial advisor, because putting it in the bank is not a solution.
The FDIC limit is irrelevant, because (as any financially competent person would tell you) you would never have the entire amount in bank accounts, no matter how many accounts you spread it across.
You could put well north of $5 million into one brokerage account, invest in a balanced portfolio of stocks/bonds/mutual funds, and you would be safe from whatever FDIC would ordinarily protect you from.
gobble-dy-****! fdic insurance is highly relevant......lol.
I can't imagine the logistics of setting up accounts with 10+ different banks. Wouldn't it be easier to just decide what to do with the money?
Can you deposit a check from the state lottery into any investment accounts. Don't you have to write a check of your own (drawn from a bank account)? No, I would not put the initial investment into 10 banks. I trust my bank enough that I wouldn't have any doubts about putting all my money there short term. I was just answering the OP's question.
Can you deposit a check from the state lottery into any investment accounts. Don't you have to write a check of your own (drawn from a bank account)? No, I would not put the initial investment into 10 banks. I trust my bank enough that I wouldn't have any doubts about putting all my money there short term. I was just answering the OP's question.
You do not have to write a check from your checking account in order to deposit it into your brokerage account. We have plenty of clients who do not have banking relationships outside of their brokerage relationship.
Also I would wager any lottery system would offer to send the funds via wire transfer which is what I'd do instead of dealing with a check
So, let's say you come into a lot of money....
I'm talking over $5million.
An inheritance?
Quote:
You don't want "financial advisors" sticking their noses and hands into your money
since you already know what you're going to do with it.
Do you?
Quote:
Big problem is, FDIC only covers $250K. TOTAL...
So, what do you do? Do you spread this money out over several banks?
This is a prime example of why the estate tax laws work.
People who can't manage money (giving or receiving) shouldn't have it... and soon won't.
Whoever has accumulated $5M to give away should also have accumulated the knowledge
needed to manage that and to manage the eventual disbursement in a manner that is both
personally responsible and financially appropriate to all parties.
This is a prime example of why the estate tax laws work.
People who can't manage money (giving or receiving) shouldn't have it... and soon won't.
Whoever has accumulated $5M to give away should also have accumulated the knowledge
needed to manage that and to manage the eventual disbursement in a manner that is both
personally responsible and financially appropriate to all parties.
What do estate tax laws have to do with this? Given that the federal exemption is over 5mm the estate tax is either a non-event or limited impact
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