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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?
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.
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.
Well said. OP needs to speak to a fee-only (not fee-based) financial advisor who does not sell anything for some good, tailored advice.
You do NOT want to put the majority of your money in a bank. You will be losing money every year due to inflation.
Quote:
Originally Posted by Retroit
Yes, you can spread it over several banks. Each bank will be covered for $250,000.
This is technically correct. But a very bad idea due to inflation, as stated above.
It would be a good idea for short term...until other investments are made. If I won the lottery, I would put it in the bank until I could distribute it to other accounts (mutual funds).
It would be a good idea for short term...until other investments are made. If I won the lottery, I would put it in the bank until I could distribute it to other accounts (mutual funds).
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?
It would be a good idea for short term...until other investments are made. If I won the lottery, I would put it in the bank until I could distribute it to other accounts (mutual funds).
It would still be significantly better to place in one brokerage account, into a sweep money market fund.
Between sipc, FDIC and ncua you should be able to pull off insured coverage if you wanted to stay relatively risk free(there are still risk involved) without short term us govt debt. Here's how it works
A simple single name account for a husband, one for a wife and one joint account = 1mm in coverage per bank
Add in trust, retirement and other account types and it's not hard to spread it out.
Most of our large clients don't worry about this though we do have two different banks to spread deposits around which means those 3 accounts would provide coverage for 2mm
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