Pandemic and money?

[NADman]

Given all the rhetoric we hear about possible bank failures and how 'dirty' cash is - if you had the same amount of savings (not income)

in the bank and under your mattress, would you move one to the other?

 

[Coytee]

If the bank is FDIC (which I'm guessing all are) then I'd personally not be worried about it.

 

If you have some serious savings, you can always move those into a brokerage account and in that account, (usually) buy various CD's from DIFFERENT banks so you could have say, $2,000,000 (which greatly exceeds FDIC limits) you can buy a bunch of DIFFERENT bank CD's INSIDE your SINGLE brokerage account....and to that end, keep your funds consolidated yet in different financial institutions while keeping each one under the FDIC limits

 

You can also put funds in your name, your wife's name, POSSIBLY joint name....  so there are multiple ways you can title the funds at the BANK to maximize your coverage.

 

In a word....  I sleep fine at night and don't worry about those funds.

[Jeff Matthews]

1 hour ago, NADman said:

if you had the same amount of savings (not income)

in the bank and under your mattress, would you move one to the other?

Coincidentally, this question presented itself in a real life scenario just a couple of weeks ago.  The case involved a son who withdrew at least $235,000 in cash using his father's power of attorney and authority as a cosigner.  Red flags go up plenty high when you see somebody possess cash in that amount.  Putting aside whether he is ripping off the old man, he is imperilling his old man's entire nest-egg. 

 

What if he gets mugged?  What if he hits a tree while driving home, and rescuers see a bag of money while he lies there injured?  What if he puts it in a duffel bag at home and he is burglarized?  What if the place burns down?

 

Cash is risky!  IMO, you'd have to be financially dumb to keep much of it around.  That's the reason everyone has turned to digital wealth.

[Coytee]

5 minutes ago, Jeff Matthews said:

The case involved a son who withdrew at least $235,000 in cash using his father's power of attorney and authority as a cosigner. 

 

 

Yikes

 

I kinda hope father pressed charges (if appropriate which I'd guess they are....NOBODY needs to withdrawal that much)

 

 

[carlthess40]

I like having silver bars and coins and some gold. Smaller ones like 1/10 to 1/4oz. That way when I pass, big brother does not know anything about it. Well, that’s what I’ve been told to do. Lol.

 

 

Sent from my iPhone using Tapatalk

[NADman]

1 hour ago, Jeff Matthews said:

What if he gets mugged?  What if he hits a tree while driving home, and rescuers see a bag of money while he lies there injured?  What if he puts it in a duffel bag at home and he is burglarized?  What if the place burns down?

What if the sky falls?

 

Simple question -

Trust the bank?

Trust cash?

[Jeff Matthews]

6 minutes ago, NADman said:

What if the sky falls?

 

Simple question -

Trust the bank?

Trust cash?

I bet almost 100% of homeowners insure their homes.  Why wouldn't you insure your cash, too?