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01/29/2006 04:00:11 PM · #1 |
| You know how most banks (here in America) are insured to $100,000? Where do the people go who have more that $100,000? |
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01/29/2006 04:01:08 PM · #2 |
I don't know...my trust fund is decidedly less than that. ;)
I guess that's where those Swiss bank accounts come in handy! |
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01/29/2006 04:01:35 PM · #3 |
| Investment firms. Most people wouldn't leave more than $100,000 in a savings or checking account. The intrest is too low. |
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01/29/2006 04:05:01 PM · #4 |
If you send me a cheque, I will figure it out :-)
Seriously; This limit is on bank, person & I believe type to some extent (so a joint account + individual account is probably 200K). Could always have multi banks. More likely this money would be invested in direct bonds, mutual funds, stock or insurance policies that are outside FDIC (although inside SDIC which is a higher amount). Either way, it's not something to rely on since I guess it would take months to sort out. |
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01/29/2006 04:06:31 PM · #5 |
| With an investment fund though, do they give you an ATM card to draw money from whenever you want to? |
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01/29/2006 04:34:25 PM · #6 |
Originally posted by Tom:
You know how most banks (here in America) are insured to $100,000? Where do the people go who have more that $100,000? |
I hope that someday I will have to ask myself this same question. |
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01/29/2006 05:00:15 PM · #7 |
I may be wrong, but in Canada, I do believe that is per account. Another thing to consider is if you do have that kind of money, you can store in a several banks.....lord knows there are enough of them.
Ray |
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01/29/2006 05:42:49 PM · #8 |
| that is per account. If you have that much cash on hand, separate accounts cover it. Most people don't have that much cash in a bank account - it is invested elsewhere. |
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01/29/2006 05:45:16 PM · #9 |
If I had 100k I'd invest it in a house.
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01/29/2006 06:28:31 PM · #10 |
Originally posted by Tom:
With an investment fund though, do they give you an ATM card to draw money from whenever you want to? |
probably not -- but they may be willing to give you a line of credit secured with the fund, and a card with access to the line of credit.
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FDIC explained
Also, it appears the Securities Investor Protection Corporation (SIPC, pronounced si-pick) insures mutual funds from it's members for up to $500,000 -- so that may be an option as well.
But in general, if a person has that kind of money they are their own insurance. That is, if they can get it once, they can get it again -- and know how to invest to keep it. Not always true, of course -- but it's a fair assumption that if a person is capable of that level of income they are capable of being responsible for it themselves.
FDIC insurance is to give the little guy piece of mind -- to make them comfortable putting their money to use in their community (ie, putting it in the bank instead of the mattress). It helps prevent runs on the bank, but doesn't assume full responsibility for everything that may or may not happen. The line had to be drawn somewhere.
David
Message edited by author 2006-01-29 19:00:36.
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01/29/2006 06:41:00 PM · #11 |
If you have more than $100K, why don't you get yourself a better camera?
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01/29/2006 07:00:46 PM · #12 |
Originally posted by Tom:
You know how most banks (here in America) are insured to $100,000? Where do the people go who have more that $100,000? |
A 2nd bank :P
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01/29/2006 07:13:37 PM · #13 |
| Yup, second bank, or a series of un-related accounts (ie no overdraft, or qualifying ties ) in the same bank. |
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01/29/2006 07:20:06 PM · #14 |
| I believe it has to be a second banking entity, not just another account. We have several around town. You will find that at around 50K you get all the free perks a bank has to offer. Not that "I" have that much mind you..... |
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01/29/2006 07:29:35 PM · #15 |
Off the top of my head;
The $100,000.00 was set in the 30's during the depression, after most of the banks had failed. Before the FDIC limit was set, if the bank failed, you lost most, or all, of your money. The $100,000.00 insurance was set to instill confidence in the banking industry once again and to get people to stop putting their money under their mattresses.
Certain other guarentees were also put in place to protect the banking industry and the stock market. It is now almost impossible for another depression like the one in 1929. The market shuts down before it can happen.
Don't know where I learned all of this, History Channel I believe. I do think most of what I stated was correct.
After reading this I do believe I need an enema for my head......All kinds of useless s**t floating around in there.
To answer you question, if you have more then $100,000.00 in liquid assets you have other, and better, options then the corner banks. This insurance is for schmucks like me who might lose $10.00 if the bank fails.
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01/29/2006 09:26:06 PM · #16 |
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02/01/2006 04:54:06 AM · #17 |
| Well I begin my Trial in the morning so I will let you all know the answers to these fine questions. I am settleing a 10 year old injury case where I broke my neck and back. It was a crane accident I happened to be watching a construction crew when a chain broke from a load of steel they were lifting and the steel hook and ball hit me. We counted 18 feet of link marks on my body and the ball and hook. I settled a civil case for just over 1/2 a million dollars in 1998. But, this portion has been dragging on for 10 years now. Figures since it's the big money end of the case. Well wish me luck. |
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