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The usual eggs in a basket advice doesn't seem appropriate when you have an FDIC-insured basket.
by thedufer 13y ago
The usual eggs in a basket advice doesn't seem appropriate when you have an FDIC-insured basket.
- antonius 13y agoLiving in Canada and under CDIC rules, only $100,000 is covered. Thus, backing up my original post of not putting all your fiat eggs in your bank basket.
- thedufer 13y agoI suppose that's something to worry about, but only for the tiny portion of people for whom more than $100,000 is a reasonable amount of "liquid short-term assets". I don't expect to ever hold more than an emergency fund + float in cash, so that's not an amount I expect to ever exceed.
- mycroft-holmes 13y agoAn FDIC insured basket doesn't do much if a currency is hyperinflated though.
- _delirium 13y agoI would put that pretty low on my list of worries, if your money is in USD or a similarly stable currency, rather than a small one like Zimbabwean dollars or Icelandic Krona. Modest inflation, perhaps even in the low double digits, is a non-negligible risk, but Weimar-style hyperinflation in USD is a fairly negligible risk, much lower than a bunch of other risks I'm exposed to. The last time the annual inflation rate in USD surpassed 100% (which still isn't even hyperinflation territory) was during the Civil War, ~150 years ago.
- poopsintub 13y agoMr. Canada, you can put $100k in one bank then move on to the next. The same basket...with different hens?
- _dark_matter_ 13y agoIt seems the analogy has surpassed it's usefulness...