[quote=CDMA ENG][quote=earlyretirement]I don’t keep large amounts in MM’s due to the no FDIC protection but you can easily keep large sums in your Checking or Savings accounts with FDIC protection. Just add on POD beneficiaries to boost the protection beyond the $250,000 limits.[/quote]
I am not getting the POD strategy. Can you please expand on past the beneficary part or is that the whole point?
CE[/quote]
For FDIC insured bank accounts, if ,for instance, the account is titled to a revocable living trust. The insurance ends up being $250k per designated unique beneficiary of the trust… So for example, if your account is titled to a living trust with 4 named beneficiaries on the trust, then it would be insuranced up to $1million http://www.fdic.gov/deposit/deposits/insured/ownership4.html
Also, FDIC insurance limit is per different account types. So if you have an account held in your trust, and other just simply a individual or joint account, then that would count separately as well.
People with brokerage accounts linked to a bank account (like Charles Schwab brokerage and CS Bank) have to be aware of how cash is held in their brokerage account..
….Especially if they are holding onto cash in both the brokerage account and the bank account… In the brokerage side, you have designate how your cash is being held. Some type of cash sweep account types in your brokerage is FDIC insured subject to the same FDIC limits per account types…You need to make sure that the amount you have in your bank sweep brokerage account AND the money you have in just a Charles Schwab Bank account per account type is within the limits.
If your cash in your brokerage is not in a FDIC type holding, it ends up being insured by the SIPC private insurance and any other insurance the brokerage firm has…
