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You don't necessary have to have all your funds spread out enough that every account is under 250k; you just have to determine how much you are willing to risk.
by professoretc 4y ago
You don't necessary have to have all your funds spread out enough that every account is under 250k; you just have to determine how much you are willing to risk. E.g., if you split your funds between two banks, if one of them goes under, you lose 50%. Your risk threshold determines how many splits you need; only if it's 0 do you need to keep every account under 250k.
- scarface74 4y agoMy risk threshold for cash is $0. So yeah, it would be split across however many banks. Of course I don’t have all my positions in cash and I take into account the necessary risk/reward equation into account. But then again, I would never work for a non public company where part of my compensation comes from “equity” and I sell/diversify all my after tax RSUs within 6 months after that vest. So I’m very risk averse about holding positions in any company I work for
- isignal 4y agoYou can just buy short term us treasuries instead of trying to spread out 250k everywhere.