patrick.net

Which asset is your IRA invested in?

Theoretically (and unlikely but maybe practically) yes. While banks time and time again most likely will get bailed out by the Federal Reserver / taxpayer, you can split your account(s) into multiple accounts not going over $250K. It's worth respecting the $250K FDIC insurance threshold if it makes you sleep better overnight.

A % of my net worth is invested in Bitcoin and other cryptos. You store Bitcoin on your hardware wallet. No entity can seize your Bitcoin as long as you hold the private keys.

mell says

you can split your account(s) into multiple accounts not going over $250K. It's worth respecting the $250K FDIC insurance threshold if it makes you sleep better overnight.

That's what I do. Also some brokerages do sweeps where they save your cash in several banks so that you don't go over.

I think you only need to worry about cash balances.

Equities not only have the SIPC $500K protection for the broker but also, each security is cleared through DTCC so there's always a way to recover stocks, as stocks don't go missing whereas banks clearly don't have enough cash deposits for all their money accounts.

rocketjoe79 says

FDIC insured for $250K

The next bank bail-out might be a Cyprus style bail-in. I guess that is when we find out that our deposits are assets of the bank, and we are unsecured creditors. Dodd-Frank provided for it and it seems like they will use it someday.

Bank runs became extinct ever since the fiat money printing press came into existence, you'll be fine.

If it's an IRA it should be in stocks anyhow.

TrumpingTits says

mell says

Theoretically (and unlikely but maybe practically) yes. While banks time and time again most likely will get bailed out by the Federal Reserver / taxpayer, you can split your account(s) into multiple accounts not going over $250K. It's worth respecting the $250K FDIC insurance threshold if it makes you sleep better overnight.

Nope. IRAs are not covered by deposit insurance. Only regular bank accounts are.

They are insured at many banks for the same 250k but it's not mandatory.

G36 says

No entity can seize your Bitcoin as long as you hold the private keys

You’re right. BTC can live on a hard drive. But no entity or person is going to want it if bank runs are occurring. People will want physical resources or cash before BTC. BTC won’t even be transferable in that scenario most likely.

Food, water and bullets are more valuable at that point. Zero people will be seeking out more BTC that potentially is not transferable without a fully operational electric grid.

SIPC is NOT backed by the government. You are really on your own unless it is FDIC insured, and then only up to the $250k limit per account.

Dholliday126 says

Bank runs became extinct ever since the fiat money printing press came into existence, you'll be fine.

If it's an IRA it should be in stocks anyhow.

Were you around in 2008?

Misc says

SIPC is NOT backed by the government. You are really on your own unless it is FDIC insured, and then only up to the $250k limit per account.

Yes, I kinda remember this from working at Schwab. SIPC seems pretty iffy compared to FDIC. They picked the initials to deliberately confuse people, imho.

I was also quite shocked to discover that brokerages don't actually keep your stock on hand. They trade it to make profits for themselves. They just have to come up with it when you want it, kinda like a checking account does with your cash. Not all those checking balances are actually on hand, only maybe 10% of the total deposits or whatever it is now that banks got everything they ever wanted from Democrats like Obama. Not saying Trump is into bank regulation either, as far as I know.

It was also quite a shock to discover that Money Market accounts are not cash balances, and there is no guarantee you'll get your money back. They look like it, with a dollar value, but in 2001 those values went below what people put it.

You didn't read the fine print? You don't have a lobbyist in DC? Well, then you're just fucked.

WookieMan says

Food, water and bullets are more valuable at that point.

It's interesting that ATF regulates exactly those things that can be used as currency in the event of a total financial breakdown: alcohol, tobacco, and firearms.

After WWII ended and the Nazis lost, their currency went to zero and people used cigarettes as currency for a few years.

I've seen on here people believing FDIC exists to keep their money safe. It was created to increase the ability of banks to leverage their assets without fear of repercussions. Before you start to disagree let me ask you my favorite question, when has a central government ever made anything better?

Also, ask the Commonwealth Savings depositors in Nebraska. Only received 8 out of 50 million owed. And if you really want to know what the banking cartel can do to you, see what happened to S.E. Coppel.