telewheelsmike
 |
Making millions of dollars does not mean that you have millions of dollars. Most millionaires have some liquid cash, but many of their money is invested in real estate, stocks, bonds, art, cars, etc.
If you have enough cash to have this issue ... the FDIC insures 100K per depositor, per bank against a bank failure. If the bank is bankrupt, then you can recover 100K through insurance. If you are married, then you and your spouse have 200K in protection, and every separate corporation that has accounts in that bank is insured to 100K each.
So if you and your spouse have accounts, and you have five separate corp accounts, you are insured up to 700K.
FDIC insurance was designed to reassure everyday people that the government would step in if a bank failed. Most people that I know with that type of money do not have it in cash, but if they do, it is usually kept in a safe deposit box or something similar. |
|
dbrutus
|
You can adopt a combination of three approaches. The first is to split up your money among several institutions and take advantage of the $100k govt. guarantee on your deposit in each institution. But diversity is its own hedge and even if you go above $100k per institution, a diversified bank holdings structure will protect you somewhat. A third approach is to buy private insurance covering larger deposits. A fourth approach is to buy the research that private bank deposit insurers use to assess risk and only deposit money in the highest rated institutions.
Between these four approaches you should find something that will make you comfortable while sacrificing the least in fees and lower interest rates. |
|
Dave87gn
 |
they put it in different banks |
|
samantha g
|
put it on a credit card and hang on tightly to it. |
|
sgtbellotti
|
That's why they have swiss banks,or you open multiple accounts for one hundred thousand dollars. |
|
mississippi mud
|
you put it into different banks or accounts |
|
-->Pick Me!<--
|
in a safe or secret locker... :) |
|
Rick B
 |
Normally it would be invested int he business you own, in stocks, mutual funds, offshore accounts, and spread among several banks.
Unless you have all your money in one bank AND that bank happens to fail, it is probably not a big deal. Do you personally know anyone who has lost money due to a bank failuer? It is not that common.
All the folks saying they secure $100K per account and to get multiple accounts is WRONG. They insure $100K per individual per institution. Having 7 $100K accounts in your name will not help. You can have $100K and your spouse can have 100K per institution. |
|
TheyCallMeMom
 |
diversify.
dont put all your eggs in one basket, so to speak |
|
=] Geebee
|
I'll look after it for you =]
Nah, put it into different banks. It's safer too. Remember the saying "Don't put all your eggs in one basket." |
|
Phil
 |
There probably isn't anything absolutely secure, but you would probably invest most of your money in stocks, bonds, and real estate. They usually give a better return on your money than bank interest, but we're talking over the course of your life time. Right now, none of those things sound like very good investments, but they have been before and they will be again. |
|
Miss Seen
|
you can use the same bank. the bank only insures that amount in each account. if you split it up you'll be fine... |
|
Steve D
 |
You have to split up the money in accounts at different banks. The FDIC only insures up to $100,000 per depositor per bank, so if you have multiple accounts at one bank that total over $100,000 you will be only partially covered.
|
|
coughy bean
|
Use many many different banks or many many accounts with the same bank
good problem to have |
|
Robert w
|
they insure 100k for each account, get multiple accounts |
|
Genny
|
just seperate them into shares.....but i doubt your making millions if your on yahoo answers
|
|
Ferrari Boy
 |
Safety deposit boxes and other banks |
|
Worldly25
|
Stocks, bonds, treasury notes, real estate and any cash is spread around to different banks. This reduces the risk |
|
boy
|
I'll hang onto it. |
|
| |
|
Homepage 
Financial
Forum 
Business & Finance 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
