Do you split across multiple banks to stay under FDIC insurance limits? Is there special banks or accounts for high cash amounts? Do you just keep it chilling in your brokerage accounts but not invested into a fund/stock?
Tangentially related question: since SIPC insurance is only 500k per account, do you also distribute investments across multiple brokerages? For some reason I never hear SIPC limits discussed even though most of us will exceed them.
Wow that’s a good point
I thought the same thing...but this is a concern that Fidelity would go under??? And even so, if you own stocks or mutual funds...is this really a concern?
These folks don’t hold in FDIC insured accounts for the most part. Always earning.
So really the norm is just dump the millions into market right?
When putting money on the markets, millions isn’t a lot. You can invest the money yourself (DCA in index/mutual funds), or any brokerage firm or bank is likely happy to help you invest that money.
Not a multi millionaire. But I hold cash in money market accounts that pay next to nothing right now......while waiting to invest further (or just hold)
Yeah me too but multi millionaires don’t do that
Don't hold that much cash, that's now how you build wealth
Just asking :)
And just answering
Wtf why hold more than 250k cash? Dont hold more than a few months worth of expenses. Invest it.
Hypothetically let’s say you didn’t want to invest it, where would you put it all?
It's always invested, but when you have a lot you hedge it. Constantly buying puts. It numbs returns , but way safer.
Get a private banker they'll handle cash if you want to hold excess, which you shouldn't. Otherwise money market/bonds/stocks.
Can u elaborate what a private banker is and what they will do exactly?
op call vanguard and ask for it