I am not a fiduciary and not giving financial advice
Are you talking about pulling cash from checking and savings? That is the way I read it. You shouldn't have to, as those are cash accounts and not investment. If you think there is going to be a bank collapse, I don't know what to tell you. I pulled around $10k to keep cash in my safe thinking that if there was a short term run on banks, I wouldn't have to worry about it. It is not like the 20s and 30s, you should still be able to swipe your card for transactions.
If you are talking individual stocks or retirement account mutual funds: If in stocks, it is based on your individual tax strategy. You can sell now, reap the profits, and the taxes (before Slo Joe raises the rates). Or you can wait for a crash, sell at a loss and get a reduction in your taxable income. If in 401k/IRA, you can rebalance your account into 100% Money Market, which is what I did. There is no tax penalty here, as the funds remain within your retirement account. I also have a brokerage IRA, and sold some stocks at quite a profit - but they automatically stay within the fund as well, and I also will not incur a tax unless I withdraw the funds to my bank account.
No. I was looking at this post and have not made any investments in my life. I was thinking a stock crash would also lead to a bank crash. If this is not the case thank you for clarification.
I think it was in the great depression because people used cash. If your financial institution doesn't go under, you will be fine.
Now I don't want to be all sunshine and rainbows, but with the mortgage lending corruption crash of 2008, the FDIC was actually insolvent and would not have had the $ to insure the accounts like they say they are supposed to be able to do (because they were invested into the same shitty mortgage securities).
One strategy (if you have the discipline) for the short term may to keep just what you need for bills and discretionary spending in a checking account and pull all other cash out (besides any minimum your credit union requires you to keep in savings). I don't think it will get to that, but I have been wrong before.
I tell you this to put it in perspective and not to boast: I would lose my shirt if my bank collapsed - I have about $100k in my savings account and $250k in retirement accounts (I'm 40). I have that in savings because I am super risk adverse (I grew up poor, often eating cereal for all meals) - I lost about 2/3 of my unrealized gains in the market in 2008 because I was out to sea when the market crashed. I didn't fully recover those positions until 2015/16. That is why I move all my positions into money market two weeks ago - I can afford to forego the gains on the current uptick in exchange for keeping my capital on the 50-70% correction. I can't really take the savings out because the of the wife. I personally want it in my safe, but we do get a fair amount of interest by keeping it there.
I am not a fiduciary and not giving financial advice
Are you talking about pulling cash from checking and savings? That is the way I read it. You shouldn't have to, as those are cash accounts and not investment. If you think there is going to be a bank collapse, I don't know what to tell you. I pulled around $10k to keep cash in my safe thinking that if there was a short term run on banks, I wouldn't have to worry about it. It is not like the 20s and 30s, you should still be able to swipe your card for transactions.
If you are talking individual stocks or retirement account mutual funds: If in stocks, it is based on your individual tax strategy. You can sell now, reap the profits, and the taxes (before Slo Joe raises the rates). Or you can wait for a crash, sell at a loss and get a reduction in your taxable income. If in 401k/IRA, you can rebalance your account into 100% Money Market, which is what I did. There is no tax penalty here, as the funds remain within your retirement account. I also have a brokerage IRA, and sold some stocks at quite a profit - but they automatically stay within the fund as well, and I also will not incur a tax unless I withdraw the funds to my bank account.
good point bro!
Thanks, great post yourself!
No. I was looking at this post and have not made any investments in my life. I was thinking a stock crash would also lead to a bank crash. If this is not the case thank you for clarification.
I think it was in the great depression because people used cash. If your financial institution doesn't go under, you will be fine.
Now I don't want to be all sunshine and rainbows, but with the mortgage lending corruption crash of 2008, the FDIC was actually insolvent and would not have had the $ to insure the accounts like they say they are supposed to be able to do (because they were invested into the same shitty mortgage securities).
One strategy (if you have the discipline) for the short term may to keep just what you need for bills and discretionary spending in a checking account and pull all other cash out (besides any minimum your credit union requires you to keep in savings). I don't think it will get to that, but I have been wrong before.
I tell you this to put it in perspective and not to boast: I would lose my shirt if my bank collapsed - I have about $100k in my savings account and $250k in retirement accounts (I'm 40). I have that in savings because I am super risk adverse (I grew up poor, often eating cereal for all meals) - I lost about 2/3 of my unrealized gains in the market in 2008 because I was out to sea when the market crashed. I didn't fully recover those positions until 2015/16. That is why I move all my positions into money market two weeks ago - I can afford to forego the gains on the current uptick in exchange for keeping my capital on the 50-70% correction. I can't really take the savings out because the of the wife. I personally want it in my safe, but we do get a fair amount of interest by keeping it there.