Originally Posted by barrelntrigger
Wait, this guy had 1.3 million in his checking account? I wonder if he diversified or just stuck all of his money in the bank...Even at 0.8% he's making 10,400 in interest. With all that money, you think he would of rock a Kiton or an Antolini. Canali, Pfftt, too cheap!
he is still losing a shit ton of money every year the 0.8% interest is not even close to covering the rate of inflation this year he might be able to afford some kiton but next year with his petty ass puchasing power he will be buying macys house brand (slight exaggeration...)
Originally Posted by Brianpore
Who's an accountant here??
Am I the only one who thinks this is stupid? FDIC only insures up to $250,000 (someone correct me if I'm wrong). If you have that much money you should know (or have someone who knows) the best way to protect your money. Earning it is only half the battle.
fdic insured over 250k but not on an individual level http://www.fdic.gov/deposit/deposits/insured/faq.html plus the fdic doesn't actually do much currently it is there to make people feel safe about the money in their banks therefore preventing a massive run for cash that would cripple the financial system considering that the reserve ratio wouldn't account for all but a fraction of that guys money (although banks right now are sitting on massive excess reserves that they really need to loan out...) for the bank to have on hand If I was him I would be worrying less about the fdic and more about the federal reserve
Originally Posted by staxringold
FDIC insurance isn't the issue. It's the keeping of that money in such a stupidly low interest vehicle that's silly. Put 800k of that in some CD with short terms or low penalties and you can still earn way way more (before even considering anything like a mutual fund with, god forbid, risk).
if this guy is keep all of his money in his checking and withdrawing large sums often I think liquidity is an issue he needs to take into account here CD's are all well and good but with this kind of cash and need for liquidity he could use some higher risk investments and if he does buy cd's he better not buy some long ass 30 year shit because he will lose a shit ton long term because the economy will eventually upswing