Happy Turkey Day

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samhradh
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Postby samhradh » Sat Nov 30, 2013 8:51 pm

MemberSince99 wrote:It's not so much the low interest that would bother me though that's certainly a pathetic rate by any standard, but also the fact that above 100k the FDIC won't insure if the bank can't or won't make good on the money


Member, excellent point. Thank you for that additional collateral as I am still trying to get this family member to take better care of their nest egg.
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whit
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Postby whit » Sun Dec 01, 2013 9:50 pm

MemberSince99 wrote:It's not so much the low interest that would bother me though that's certainly a pathetic rate by any standard, but also the fact that above 100k the FDIC won't insure if the bank can't or won't make good on the money and thus it's not insured over 100k and they could end up eating that (though no doubt even if that should happen the CEO would get a stunningly massive bonus for his great efforts as always). That would bother me even more than the tiny rate of return on the money because at that point that money is just like a 401k - an investment with no guarantee and at a terrible rate of return at that.


it's 250k per social per bank, which is why people who keep that much liquid will spread it around.. rare to see someone who holds millions in a bank account, but that happens too when their portfolio exceeds that by however much times they're comfortable with having it invested..and yeah they keep it in an account that earns only .25, .30 and they don't care.

there are investments where the principal is guaranteed, and they're insured through other means--i believe life insurance works much this way, including places like transamerica, along with big banks.

i have seen someone's work 401k where they get matched (i'm guessing this is where the perk comes in) but they're yielding a .02% overall..i couldn't believe it, it was holding almost 200k and yet the amount its earning is less then a savings account

didn't do much except eat with the family and hung out with friends, picked up a much need ipad ;P and i didn't even fight the crowds for that, no point.

gleefully waiting for the after christmas sales.

MemberSince99
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Postby MemberSince99 » Mon Dec 02, 2013 6:41 am

401ks are by nature as unstable as Charles Manson. No one can guarantee you a rate of return on one - they make sure to repeat that over and over and over even Barney Fife couldn't screw that one up.


I've got a couple open that are doing ok ONLY because the stock market is at record levels, or I would be losing money on them. The one I had previously before protections were put into place I lost most of what I put into it as the stock tanked after 9/11 (eventually going down to a dollar when I bought most of my shares at over 20) and what was left I could not roll at the time having no job (you couldn't hold it then) so I had to eat the tax penalty on what little was left of it, which was not much. I'd have been WAY money ahead to just pay taxes on it upfront and take the money to begin with.


So I'm not a big fan of 401k. I imagine when the stock market drops, and it will, that money won't look so good and it doesn't look all that great even with the market at record levels.


This is just my opinion, but 401k is just a way for the CEOs to play with your money at no risk to themselves (or shall we say their bonuses which they get no matter how well or poorly the company does). If I was an amoral sociopath like they are, I'd want in on that too, so hard to blame them. They're just looting all they can on their way out the door to their golden parachutes like any good rugged individualist would.

Obi-dan
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Postby Obi-dan » Mon Dec 02, 2013 12:19 pm

MemberSince99 wrote:the fact that above 100k the FDIC won't insure if the bank can't or won't make good on the money and thus it's not insured over 100k and they could end up eating that


Actually, FDIC rates are up to $250k. And that is per bank, per account owner, per category. There are several categories so it is easy to insure $750k without even getting fancy in one bank.
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samhradh
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Postby samhradh » Mon Dec 02, 2013 12:58 pm

Obi-dan wrote:Actually, FDIC rates are up to $250k. And that is per bank, per account owner, per category. There are several categories so it is easy to insure $750k without even getting fancy in one bank.


Thanks for clarification. I was surprised to hear $100K as I didn't remember that being the case. I already warned the family member, though. Can't hurt if it puts fire under them!
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