Well, if you have $600 million in deposits at a single bank, it would not be fully insured by the FDIC. It doesn't just have a limit of $250,000 per account holder, it's also limited by per ownership category, so, in order to ensure that all of your funds are fully insured, people like Oprah spread your money across multiple accounts or multiple banks.
For example, you could create multiple accounts in your name, with each account holding no more than $250,000. Alternatively, you could open accounts in different ownership categories, such as joint accounts with different co-owners, trust accounts, or retirement accounts, as each category is insured separately up to $250,000.
Simply having multiple accounts at the same bank does not necessarily mean that all of your funds are insured. If all of your accounts have the same ownership category and collectively exceed the FDIC insurance limit, then you may still be at risk of losing some of your deposits in the event that the bank fails. That's how rich people lose money when banks fail.
Overall, it's recommended to consult with a financial advisor to determine the best strategy for protecting your funds and ensuring that they are fully insured by the FDIC.
Good breakdown,… The chance of her or anyone with that kind of dough having $500mm sitting in a checking or savings account or ten thousand of them is pretty slim though. Her wealth is invested. I think the FDIC part, while interesting to analyze, is irrelevant - much more likely she had a big pile of the stock, and now it’s worthless. It’d be interesting to dig deep into regular mutual funds of normies to see if their 401ks ate some dookie because of this, I’m sure they did. “Hey bud, got a 401k at work? You just ate some loss from this too. Look!”
I’m sure we’d get glazed over eyes in return just like every other truth we deal with here.
Why have that much in one bank? Makes zero sense.
Well, if you have $600 million in deposits at a single bank, it would not be fully insured by the FDIC. It doesn't just have a limit of $250,000 per account holder, it's also limited by per ownership category, so, in order to ensure that all of your funds are fully insured, people like Oprah spread your money across multiple accounts or multiple banks.
For example, you could create multiple accounts in your name, with each account holding no more than $250,000. Alternatively, you could open accounts in different ownership categories, such as joint accounts with different co-owners, trust accounts, or retirement accounts, as each category is insured separately up to $250,000.
Simply having multiple accounts at the same bank does not necessarily mean that all of your funds are insured. If all of your accounts have the same ownership category and collectively exceed the FDIC insurance limit, then you may still be at risk of losing some of your deposits in the event that the bank fails. That's how rich people lose money when banks fail.
Overall, it's recommended to consult with a financial advisor to determine the best strategy for protecting your funds and ensuring that they are fully insured by the FDIC.
Good breakdown,… The chance of her or anyone with that kind of dough having $500mm sitting in a checking or savings account or ten thousand of them is pretty slim though. Her wealth is invested. I think the FDIC part, while interesting to analyze, is irrelevant - much more likely she had a big pile of the stock, and now it’s worthless. It’d be interesting to dig deep into regular mutual funds of normies to see if their 401ks ate some dookie because of this, I’m sure they did. “Hey bud, got a 401k at work? You just ate some loss from this too. Look!” I’m sure we’d get glazed over eyes in return just like every other truth we deal with here.