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sonneillon
March 14, 2009 2:18 PM
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What about tax free Insured Municipal bonds. Municipalities generally don't go bankrupt on their bonds and we've shown that no matter how stupid the insurers are the tax payers will cover it.

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Mr.Compliance
March 14, 2009 2:20 PM
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First, the FDIC limits of $250K are only good until the end of this year. Jan 1 2010 they go back to $100K, so make sure they're short term CDs.


Second, the CDARS product is not offered by a bank, they are offered by an LLC that keeps track of your holdings for you (a custodian of the holdings). This LLC is not a bank and is not FDIC insured.


Third, these CDs are likely called brokered deposits, which have higher rates than the bank up the road. These products have come under fire as of late because of the cost to financial institutions.


Lastly, you still need to track your CDARs portfolio your other bank accounts - checking, savings, other CD accounts, etc... Depending on the account registration, with CDARS you could be over the FDIC limit if you hold a CD within the portfolio when you take into account ALL your holdings at that financial institution. Make sure you know how the FDIC insurance limits apply to all your accounts.

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Blueskylaw
March 14, 2009 2:49 PM
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$50,000,000 * 0.15% = $75,000

For $35,000 I can hire an accounting student full time to take care of my accounts for me. This will give the student relevent experience, pay for his school and save me $40,000 a year.
He may even give me insider information or tips later on in his career as a way of saying thank you.

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2 replies
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yasth
March 14, 2009 8:47 PM
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@Blueskylaw: You can also lose it all when your student gets all Madoff on your accounts.

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SayAhh
March 19, 2009 6:09 AM
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@yasth: Who's to say this LLC that's offering the CDARS product won't do it themselves?

On a TOTALLY unrelated subject, does anyone know if AIG offers CDARS or handles its insurance claims?

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LithiumIron_GitEmSteveDave
March 14, 2009 3:11 PM
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If I had the money, I'd invest in a white board, and keep track of where my money is that way. Seems a little cheaper, and possibly more impressive if you bring a lady over.

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1 replies
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Todd Fernandez
March 15, 2009 9:40 PM
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@AfraidOfVelcro_GitEmSteveDave: until she finds out about all the other ladies you have been impressing with your \"wealth board\" and erases it :)

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Anonymous
March 14, 2009 3:28 PM
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This reminds me of another site that offers higher savings rates and they say to \"trust us\". That business claims to deposit funds in a FDIC insured bank so everything is safe and secure, but in the end your relationship is NOT with a bank that is FDIC insured. Could the company just move the money off-shore and disappear? Yes.

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Walkallovaya
March 14, 2009 4:35 PM
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White board - NICE!

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johnva
March 14, 2009 5:11 PM
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Just use Treasury bonds or T-bills if you really need government insurance on that much cash.

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jblack
March 14, 2009 6:34 PM
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I would think, after AIG, that people would steer clear of third party financial insurance.

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YOXIM
March 14, 2009 6:51 PM
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Some people might tell you that buying gold is the best way to insure your cash. Those people are lying to you They probably voted for Ron Paul too, and think the world is controlled by the Illuminati and the Freemasons, so you probably shouldn't be taking financial advice from them anyway, but that's neither here nor there.

What you should do is sink all your cash into coke. I'm talking pure, top of the shelf, Columbian white gold here folks. This stuff is always gonna be in demand, and even if the global economy completely crashes and burns and we revert to the barter system, you'll still be able to afford a couple of castles with $50 mil worth of coke.

And if you want to impress a lady, well, few things are gonna work like two huge mounds of coke on your desk, Tony Montana style. It's a win win situation.

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orlo
March 14, 2009 8:51 PM
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@YOXIM: I suggest keeping 50% of your portfolio in crack form in order to maintain liquidity.

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metaslugx
March 15, 2009 5:50 PM
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FDIC is doomed anyway.

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PageMagumbalee
March 16, 2009 1:57 AM
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I handle the CDARS accounts at the FI I work for. It's generally a very short term investment.

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Katherine Carroll
April 5, 2009 11:33 PM
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Important Info! for when that lottery ticket hits. LOL!

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stands2reason
April 12, 2009 12:47 PM
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Why would need (or want) to have that much in cash. I mean, I know that mortgages on mansion made of solid gold can be expensive, but seriously, once you get that kind of cash, you'd be better off putting the rest in something higher-yield, like stocks.

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