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The Banking Crisis: How to Protect Your Money
On this episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Portfolio Management Analyst Hunter Daniel to discuss ways to protect your money in the wake of recent bank runs and bailouts.
According to Hunter, the risk around the banking system today is much less than 2008 because the default rate on the mortgage rate is not as high as it was before the Great Recession. There are also more systems in place to prevent mass failures, like the Bank Term Funding Program, which allows banks to borrow money from the Fed against their assets to pay depositors.
Still, it’s important to take action if you have more money in the bank than the FDIC-insured limit. Hunter and Chris advise listeners to consider enrolling in ICS (Insured Cash Sweep) if they have a business account or a very large deposit in the bank to ensure their money is FDIC-insured. ICS can distribute the assets in your account to hundreds of different banks so that no more than the FDIC-insured limit sits at each bank. Morton advisors may also consider investing in Treasuries as a way to preserve capital because this allows for some interest to be earned while the money stays in your possession.
DISCLOSURES:
Information presented is for educational purposes only and is not intended as an offer or solicitation with respect to the purchase of any security or asset class. This presentation should not be relied on for investment recommendations. Any investment strategy including the private investment opportunities discussed herein are speculative and involve a high degree of risk. References to specific investments are for illustrative purposes only and should not be interpreted as recommendations to purchase or sell such securities.
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By Chris GaleskiOn this episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Portfolio Management Analyst Hunter Daniel to discuss ways to protect your money in the wake of recent bank runs and bailouts.
According to Hunter, the risk around the banking system today is much less than 2008 because the default rate on the mortgage rate is not as high as it was before the Great Recession. There are also more systems in place to prevent mass failures, like the Bank Term Funding Program, which allows banks to borrow money from the Fed against their assets to pay depositors.
Still, it’s important to take action if you have more money in the bank than the FDIC-insured limit. Hunter and Chris advise listeners to consider enrolling in ICS (Insured Cash Sweep) if they have a business account or a very large deposit in the bank to ensure their money is FDIC-insured. ICS can distribute the assets in your account to hundreds of different banks so that no more than the FDIC-insured limit sits at each bank. Morton advisors may also consider investing in Treasuries as a way to preserve capital because this allows for some interest to be earned while the money stays in your possession.
DISCLOSURES:
Information presented is for educational purposes only and is not intended as an offer or solicitation with respect to the purchase of any security or asset class. This presentation should not be relied on for investment recommendations. Any investment strategy including the private investment opportunities discussed herein are speculative and involve a high degree of risk. References to specific investments are for illustrative purposes only and should not be interpreted as recommendations to purchase or sell such securities.