How Many Banks Do You Use To Store Your Money?

watelessness

watelessness

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Joined
Apr 26, 2012
Messages
2,872
I've started to get paranoid of another banktastrophy and have started spreading my money around town.

How many banks is a good number?
 
Don't store your money - buy more guitars !!

But on a more serious note, as most banks are part of a Group, spreading your money around may not help as much as you would hope........
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I keep all my cash (which is not much) in one bank, but I work for said bank so I'm quite familiar with its expected ability to handle crisis.

The big banks actually undergo stress testing (maybe all do, not sure if it's regulatory). They're evaluated in a number of areas so they can plan for disaster.

I don't think we'll have another big screw up any time soon. Banks are now much more careful about what debt they take on, and regulations have been put in place to add more rigor around the loans process.

There's always risk in stockpiling money anywhere, but I wouldn't lose sleep over thoughts of a new crisis.
 
The stress tests have proved time and time agin to be complete bollocks!. Bank Of America being a recent example. The risk of a big bank failing again seems remote right now but the mistakes that led to the crisis are still being made. That said, I'm confident enough at the moment to just go with one bank. If I had a large amount of savings I may spread it around a couple but it would have to be a large amount... Six figures...
 
I think most, if not all of us are aware of the 'government protections' of your assets. While I don't believe it is a good idea to stash all of your money under your mattress, I think it is prudent to take a realistic view of the banks' and government's practices and policies, past, present and possible future.

Most importantly, I think it is crucial to try to see outside of your normalcy bias at what may come down the pike.
 
I think Bob is on the money here.
There are far two many variables to act on advice in a thread in a guitar forum.

I do deal with more than one bank, mostly because I want them to stay aware that I have alternatives, but also because they provide different services and some are better than others. Also, their advice varies and I find it useful to have more than one perspective on what is right.
 
Dirty Bob said:
Unfortunately in terms of the general population you are quite mistaken in your first sentence. In fact it is the opposite.

as to your last sentence...let's just say we are in agreement...


black-swan-theory-book-by-nassim-taleb-similar-to-arab-spring.jpg
Click to expand...

Wait, aren't all swans white?
 
I only use the bank to keep enough money to cover my bills and a very slight cushion.
I store cash at home enough to get by for a few months, I tend to carry enough cash to feel safe, the rest I invest. The average bank or stock investment doesn't yield enough profit. Investing in guitars as much as I wish was smart isn't unless you buy cheap and plan on long term. I tend to invest in small fast returns and keep reinvesting till I cash out part of it to make a purchase or pay a bill. I don't work a 9 to 5 job so investing is how I survive.
 
NomadMike said:
I agree, now if you all will excuse me I need to get some medical advice from some strangers on a real estate site.
Click to expand...

If they say amputation consider me in agreement. Let me know when and where I should be with my CARCASS starter kit!
 
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