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This highlights the problem-- the most "conservative" approach, a savings account, is actually TERRIBLE financial advice. First the money won't keep pace with

This highlights the problem-- the most "conservative" approach, a savings account, is actually TERRIBLE financial advice. First the money won't keep pace with inflation and second a bank failure will wipe out the fortune. That happened to savers in 2008, most notably the failure of IndyMac.

WalterBright 9y ago
Of course. But you have to park the money somewhere while you learn about where to invest it. If you've got more than $250K, I'd split it up into multiple accounts at different banks.
- rconti 9y ago
  I suspect this is per depositor not per account... but I'm not sure.
  - dhruvrrp 9y ago
    FDIC covers $250,000 for all of a persons accounts in one bank. So you just need to have accounts in separate banks to 'increase' your coverage. https://www.fdic.gov/deposit/covered/categories.html https://www.fdic.gov/deposit/covered/categories.html
  - dandandan 9y ago
    It's per account and can be doubled with a "payable on death" designee.
    - mysterypie 9y ago
      > It's per account I think you're mistaken about the first part of your statement: The FDIC says, "All single accounts owned by the same person at the same bank are added together and insured up to $250,000." (see https://www.fdic.gov/deposit/covered/categories.html https://www.fdic.gov/deposit/covered/categories.html ) But you are correct that it can be doubled, tripled, quadrupled, or even greater by opening different account types such as a Retirement Account, a Joint Account, a Revocable Trust Account, etc., at the same bank since each account type seems to get separate treatment (according to the same FDIC link).
rconti 9y ago
So- Your money not keeping pace with inflation is better than anyone profiled in the article managed. Worst case scenario, bank failure, they might still be better off.
- hux_ 9y ago
  People fall into two broad traps. Either they are loosing money for no good reason (a consumption culture with ever escalating healthcare/edu/housing prices makes this simple), or they are accumulating money for no good reason, thanks to some class they took that says beating inflation is the point of their story. Once your housing/family healthcare/edu expenses are taken care off kiddos, there is no good reason to be beating inflation. Unless you are trying to build the Taj Mahal or something.
- ChuckMcM 9y ago
  Actually there are some very straight forward wealth management schemes that may not get you the most return on your money but are better in nearly every metric than putting your cash in a bank savings account. The canonical example is a treasury ladder.

WalterBright 9y ago

Of course. But you have to park the money somewhere while you learn about where to invest it. If you've got more than $250K, I'd split it up into multiple accounts at different banks.

rconti 9y ago
I suspect this is per depositor not per account... but I'm not sure.
- dhruvrrp 9y ago
  FDIC covers $250,000 for all of a persons accounts in one bank. So you just need to have accounts in separate banks to 'increase' your coverage. https://www.fdic.gov/deposit/covered/categories.html https://www.fdic.gov/deposit/covered/categories.html
- dandandan 9y ago
  It's per account and can be doubled with a "payable on death" designee.
  - mysterypie 9y ago
    > It's per account I think you're mistaken about the first part of your statement: The FDIC says, "All single accounts owned by the same person at the same bank are added together and insured up to $250,000." (see https://www.fdic.gov/deposit/covered/categories.html https://www.fdic.gov/deposit/covered/categories.html ) But you are correct that it can be doubled, tripled, quadrupled, or even greater by opening different account types such as a Retirement Account, a Joint Account, a Revocable Trust Account, etc., at the same bank since each account type seems to get separate treatment (according to the same FDIC link).

rconti 9y ago

So- Your money not keeping pace with inflation is better than anyone profiled in the article managed. Worst case scenario, bank failure, they might still be better off.

hux_ 9y ago
People fall into two broad traps. Either they are loosing money for no good reason (a consumption culture with ever escalating healthcare/edu/housing prices makes this simple), or they are accumulating money for no good reason, thanks to some class they took that says beating inflation is the point of their story. Once your housing/family healthcare/edu expenses are taken care off kiddos, there is no good reason to be beating inflation. Unless you are trying to build the Taj Mahal or something.
ChuckMcM 9y ago
Actually there are some very straight forward wealth management schemes that may not get you the most return on your money but are better in nearly every metric than putting your cash in a bank savings account. The canonical example is a treasury ladder.