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We did too. This is nowhere near the same but my husband and I lived through a revolution in our country of origin. Whatever money was in the bank was confiscated, you were limited in the amounts you were allowed to have on your person, everything went to the state. For this reason we tend to overreact hence yes we have taken some out. Everyone else commenting here is probably right but having lived through that horrific experience makes you a little paranoid.
Truth is, we should be ready for anything. I think balance is the key, anything that we have in the bank is great; however, it's nothing wrong with some "shoebox" cash too, and plus every asset, and financials in the bank is not always accessible overnight for an emergency, especially if it were over a certain dollar amount.
One of my tenant who couldn't get to his bank thought it would be fine to get cash out of the ATM to pay his rent. Well, he could get cash, but the daily limit had been lowered pretty substantially, so he had to keep going back for the limit and it made him a day late with the rent by the time he could accumulate enough cash.
I'm not worried about my accounts in the bank, but perhaps it will become a bit dicey to get folding money until the public settles down a little bit and realizes there isn't any reason to panic.
A bit of hardship for a few months. We will all get through it just fine unless the public goes completely irrational.
I've been moving money around for weeks trying to get comfortable, banks are limiting me to $5,000 a day via online banking.
Not touching 401k or IRA.
Put $10,000 in a Robinhood account just to play around while things are super volatile
I have money split between 3 banks, have about 50% of our capital in Navy Credit Union (for some reason I always feel like my money is just safer in Navy credit union) and I decided to take out about $5,000 cash to just keep in the safe.
If we get to the point where the economy gets so bad where there is a serious run on banks, the dollar is going to be so worthless it's really not going to matter anyway. I think all this money printing we're going to end up with hyperinflation in the next 5-10 years and we'll see $20 gallons of milk, $100,000 for a Honda civic. If you're going cash do it short term, buy up some real estate in the next few months when it's cheap.. I'm planning to hedge and come out of this better than before even if it's a completely different landscape.
Banks are generally safe as long as your account is FDIC insured. Fiat money is not backed by any hard assets and can be devalued to infinite by the FED. Its just a bunch of numbers on a computer screen. The risk of your funds disappearing because the government runs out is a pipe dream.
Keeping some hard cash at home (maybe $1000 or so) is also a good idea. When the S*%T hits the fan, banks will close and ATM's will be down. Cash will be scarce. We live in Florida and this happens around hurricane events. The same type of event could occur on a larger scale nationwide during this Coronavirus pandemic.
I've been moving money around for weeks trying to get comfortable, banks are limiting me to $5,000 a day via online banking.
Not touching 401k or IRA.
Put $10,000 in a Robinhood account just to play around while things are super volatile
I have money split between 3 banks, have about 50% of our capital in Navy Credit Union (for some reason I always feel like my money is just safer in Navy credit union) and I decided to take out about $5,000 cash to just keep in the safe.
If we get to the point where the economy gets so bad where there is a serious run on banks, the dollar is going to be so worthless it's really not going to matter anyway. I think all this money printing we're going to end up with hyperinflation in the next 5-10 years and we'll see $20 gallons of milk, $100,000 for a Honda civic. If you're going cash do it short term, buy up some real estate in the next few months when it's cheap.. I'm planning to hedge and come out of this better than before even if it's a completely different landscape.
Every asset class has risks and the older I get, the more I realize I just need to be highly diversified if I want to guarantee my future financial security. In real estate, it really depends on the situation of each property and the economy as a whole. This pandemic has been WAY worse than the Great Recession in my view. I was unaffected by the Great Recession except on paper, where I watched my stock portfolio plummet and my housing value decline, but I didn't sell my stocks until they came back up to where they were anyway and when I sold my condo, I bought another one immediately for cheaper, so it was kind of a wash. Our commercial real estate assets didn't suffer, though, especially the apartments -- everyone was losing their houses, so we were at 97% occupancy or above throughout the recession. Apartments pretty much do well in any economy; people need somewhere to live. That being said, the pandemic has screwed that up too because if you have too many renters who aren't working, then they stop paying their rent, you can't even evict them. I agree once we're out of the woods on this one, there are going to be some great real estate buys for the survivors, but it's proof in some economies there isn't really a "safe haven" investment. You can stockpile cash, but if you had a bunch of cash on the sidelines for the last 5 years, you missed out on incredible gains in the market.
I still think diversified stocks and bonds are the safest bets. I have most of my net worth in commercial real estate holdings and they make me nervous, even though most will survive and can be big winners, things like apartment buildings are a bit dicey at the moment with some tenants not wanting or not being able to pay rent, hotels that are suffering from this whole situation, and even office buildings aren't immune if you get a tenant who files for bankruptcy during this. There has been a decline in all real estate investments recently because of this, but hopefully it comes to an end soon and yes, there will be opportunities on the other side.
For now...no one knows where the next hit will be.
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