4 ms·

> People depositing above that limit are generally not working from the same limitations and lack of information that regular people are. 250k is not that much

> People depositing above that limit are generally not working from the same limitations and lack of information that regular people are. 250k is not that much money. What a weird statement.

TimTheTinker 4y ago
Feels like a lot to me. That's more than a year's wages.
- eric_cc 4y ago
  Consider financially responsible people in their 50’s and 60’s that have had decades to save. There are plenty of “regular”, middle class people with this type of savings in their account.
  - DubiousPusher 4y ago
    If you have that much in liquid cash, you meet virtually no definition of the term "middle class". You are upper middle class at leadt and you probably have a financial advisor who is telling you that you shouldn't locate all your money in one account unless it is yielding in a way that justifies such a risk. At least I hope you do.
    - solveit 4y ago
      Or you're just old and you don't believe in investing. Lots of people are like this.
      - DubiousPusher 4y ago
        I concede that edge case. My dad hides cash in coffee cans.
- DubiousPusher 4y ago
  Yes, that is a lot of cash for an individual. I don't really know why anyone would sit on a lot more cash than that without at least putting a healthy portion into Treasuries or other durable assets. For businesses, it is a trickier proposition but there are reasons that companies roll cash into assets and operate largely from credit.
- enra 4y ago
  Companies need to run payroll twice a month. $250k is about one months payroll to 25 people. Many companies are a lot larger than that. You also have planned and unexpected expenses and other payments. Many payroll and providers also require you to set up one account where the funds are pulled. You don’t want to move money around every week, so you keep heathy balance.
  - barsonme 4y ago
    I don't disagree, but fwiw it's only about one month's payroll for 25 people if each employee makes around $200k per year.
    - enra 4y ago
      Obviously people have different salaries but also are payroll taxes and other taxes or fees that also need to be paid like unemployment insurance and whatever else the local government has decided. Sometimes these are collected city/county as well as at state level. Benefits also cost $500-2500/mo (if you cover 100% employee and 70% dependents). Not complaining but just saying there are costs that are not always apparent to employees.
      - 0xB31B1B 4y ago
        also rent, servers, the cost of anything else you have to run your businesses. For broadly generic tech companies, take everyones top line salaries, double them, that is your rule of thumb monthly expense line item that wraps everything up (rent, taxes, the cost of doing business, marketing spend, etc)
  - tolmasky 4y ago
    It’s also never adjusted for inflation, despite this mess in theory being triggered by raising of interest rates due to super high inflation. 250K when it was set in 2010 is the equivalent of almost $350K now. If we ignore that, then we’re just admitting the number is totally arbitrary and we shouldn’t even bother arguing whether it’s a lot or a little. Separately, it’s weird that a joint account is insured to 500K but a business account stays at 250K. It actually does weirdly favor wealthy individuals vs. working capital accounts for businesses that might represent many employees.
- 8note 4y ago
  That's more than most American will ever have in savings, no less
- throwaway5959 4y ago
  That’s a senior software Eng in LA’s annual salary. With five years of experience.
  - DubiousPusher 4y ago
    Yeah, that's actually about what I make but let's be real, this is a very small number of people. I have a financial planner. Are there people in this asset class who aren't getting financial advice? Yes. But it's not like ma and pa kettle are getting wrung out by the savings and loan here.
deleted 4y ago
[deleted]
rolldat777 4y ago
It is more than the average lifetime peak retirement savings in the US (which will be in multiple accounts, generally).

> People depositing above that limit are generally not working from the same limitations and lack of information that regular people are. 250k is not that much money. What a weird statement.

TimTheTinker 4y ago

Feels like a lot to me. That's more than a year's wages.

eric_cc 4y ago
Consider financially responsible people in their 50’s and 60’s that have had decades to save. There are plenty of “regular”, middle class people with this type of savings in their account.
- DubiousPusher 4y ago
  If you have that much in liquid cash, you meet virtually no definition of the term "middle class". You are upper middle class at leadt and you probably have a financial advisor who is telling you that you shouldn't locate all your money in one account unless it is yielding in a way that justifies such a risk. At least I hope you do.
  - solveit 4y ago
    Or you're just old and you don't believe in investing. Lots of people are like this.
    - DubiousPusher 4y ago
      I concede that edge case. My dad hides cash in coffee cans.
DubiousPusher 4y ago
Yes, that is a lot of cash for an individual. I don't really know why anyone would sit on a lot more cash than that without at least putting a healthy portion into Treasuries or other durable assets. For businesses, it is a trickier proposition but there are reasons that companies roll cash into assets and operate largely from credit.
enra 4y ago
Companies need to run payroll twice a month. $250k is about one months payroll to 25 people. Many companies are a lot larger than that. You also have planned and unexpected expenses and other payments. Many payroll and providers also require you to set up one account where the funds are pulled. You don’t want to move money around every week, so you keep heathy balance.
- barsonme 4y ago
  I don't disagree, but fwiw it's only about one month's payroll for 25 people if each employee makes around $200k per year.
  - enra 4y ago
    Obviously people have different salaries but also are payroll taxes and other taxes or fees that also need to be paid like unemployment insurance and whatever else the local government has decided. Sometimes these are collected city/county as well as at state level. Benefits also cost $500-2500/mo (if you cover 100% employee and 70% dependents). Not complaining but just saying there are costs that are not always apparent to employees.
    - 0xB31B1B 4y ago
      also rent, servers, the cost of anything else you have to run your businesses. For broadly generic tech companies, take everyones top line salaries, double them, that is your rule of thumb monthly expense line item that wraps everything up (rent, taxes, the cost of doing business, marketing spend, etc)
- tolmasky 4y ago
  It’s also never adjusted for inflation, despite this mess in theory being triggered by raising of interest rates due to super high inflation. 250K when it was set in 2010 is the equivalent of almost $350K now. If we ignore that, then we’re just admitting the number is totally arbitrary and we shouldn’t even bother arguing whether it’s a lot or a little. Separately, it’s weird that a joint account is insured to 500K but a business account stays at 250K. It actually does weirdly favor wealthy individuals vs. working capital accounts for businesses that might represent many employees.
8note 4y ago
That's more than most American will ever have in savings, no less
throwaway5959 4y ago
That’s a senior software Eng in LA’s annual salary. With five years of experience.
- DubiousPusher 4y ago
  Yeah, that's actually about what I make but let's be real, this is a very small number of people. I have a financial planner. Are there people in this asset class who aren't getting financial advice? Yes. But it's not like ma and pa kettle are getting wrung out by the savings and loan here.

deleted 4y ago

[deleted]

rolldat777 4y ago

It is more than the average lifetime peak retirement savings in the US (which will be in multiple accounts, generally).