If You Had To Sell Your Stocks & Bonds Immediatley How Would You Disperse The Money?

fmdog44

fmdog44

Well-known Member
Location
Houston, Texas
Given a substantial amount in the markets and suddenly you had to sell all knowing the FDIC guarantees only 250K per customer are set up to move your money if you had to?
 

I don't have any stocks or bonds but if I did I'd probably put as much into the CD's that would be insured,the rest maybe in a money market or savings account.
 

I'm confused by your question. I hope I'm not misunderstanding what you're asking, but here goes:

First, the FDIC does NOT insure stocks OR bonds. No one does. They both have their own risk factors, and that is what you evaluate when deciding how much and when to invest. You accept a certain amount of risk on investing, based on what you hope to receive back in profit.

Now if you are talking about the SIPC, that is an entirely different guarantee. It is designed to protect against brokerage fraud, where the SEC closes down a firm for breaking regulatory law, and liquidates or sells the assets. It does not protect you if you are losing $$$$ in the market, under any circumstances.

From the SIPC website:
"....SIPC protection is limited. SIPC only protects the custody function of the broker dealer, which means that SIPC works to restore to customers their securities and cash that are in their accounts when the brokerage firm liquidation begins.

SIPC does not protect against the decline in value of your securities. SIPC does not protect individuals who are sold worthless stocks and other securities. SIPC does not protect claims against a broker for bad investment advice, or for recommending inappropriate investments.

It is important to recognize that SIPC protection is not the same as protection for your cash at a Federal Deposit Insurance Corporation (FDIC) insured banking institution because SIPC does not protect the value of any security. " (emphasis mine)

I hope this makes sense, and clears up any confusion.

To answer the OP, if I were to liquidate our entire portfolio, it would be a pain in the a$$ to find multiple banks to deposit the cash into. There is also the consideration that half our portfolio is in a non-taxable account, e.g., an IRA. Liquidating would create a massive income tax bill at the very highest rate, which I believe is still 47%. In addition, our Medicare premiums would also jump to the highest level, quadrupling our healthcare costs.

I cannot envision any circumstances where it would be worthwhile for us to incur such heavy additional, and unnecessary, costs.
 
I think I know what you are asking ....I would use a us treasury money market at fidelity ...... I never care about fdic since I don’t use banks for much ...... but when I have lots of cash at times I use a fidelity treasury money market since they are state tax free
 
Lots & lots of lottery tickets! High Risk = High Returns! Save a little for a mask & firearm to begin a new career of robbing banks...<g>...
 
You could check with your bank. You can have multiple large CD's that are guaranteed by FDIC...use different names, i.e., and/or a business account, and personal accounts.
 
I would do the same as Liberty but I would also throw some real estate into the mix because I have a knack for investing in real estate...or at least I used to.
 
Ruth n Jersey said:
I don't have any stocks or bonds but if I did I'd probably put as much into the CD's that would be insured,the rest maybe in a money market or savings account.
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But the amount that would be insured is limited to 250K so that would not work. If there was a market crash you could lose it all by the time the red tape required to open such accounts would be satisfied.
 
Our bank has it spelled out for the multiple high CD users. The issue is being FDIC insured, not paying the tax on whatever you have. Which brings up a good point - be sure of tax implications!

Agree with Lara about real estate investments. The most money that's made is investing in undeveloped land and selling it for development in rapid growth areas but be careful...lol. Know folks that have lost money on REIT's, too.
 
L200 is right. FDIC does not insure investments in the stock market. I have a significant amount in "cash" for an emergency fund so as not to have to sell my investments when I need a lot of money. Been there, done that and I learned my lesson. The only thing I can think of that would necessitate me taking distributions from all my investments would be an extended nursing home stay...but even then, all wouldn't have to be taken out at once and maybe I still wouldn't need all of it.
 
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The op was not worried about insuring investments ... his concern was if he liquidated 7 figures worth what could he easily do with the money where it would not be at risk...the answer is put it in treasuries or use a treasury money market fund ...all brokerages pretty much have them
 
My husband handles our stocks I don' t even act like I got a clue..

All I know is they are doing pretty good right now......

That's all I want to know. :)
 
You could be making a big mistake....my wife once felt the same .....that was until she became a widow before I met her .....she had a mess of investments dropped in her lap , no clue and went to the guy at her local bank she trusted .... he lost half her savings in dot com and tech ..

Today she is a changed woman ...she wants to understand everything I do and in fact I never make a change without running it by her first ....it is so important for women to learn ..

While 80% of all married men die married , 80% of all married women die alone .


Let that sink in ,,I can’t emphasis it anymore
 
mathjak107 said:
You could be making a big mistake....my wife once felt the same .....that was until she became a widow before I met her .....she had a mess of investments dropped in her lap , no clue and went to the guy at her local bank she trusted .... he lost half her savings in dot com and tech ..

Today she is a changed woman ...she wants to understand everything I do and in fact I never make a change without running it by her first ....it is so important for women to learn ..

While 80% of all married men die married , 80% of all married women die alone .


Let that sink in ,,I can’t emphasis it anymore
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I do know I am the beneficiary..if it gets to that point I'm sure I will figure it out, if not I'll have to hire a lawyer I suppose.
 

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