I just heard on Rich Dad that if bank runs become systemic, the FDIC can only fund at a rate of 0.03%. Also, Janet Yellen in a congressional hearing said that she and other people at the Fed will decide which banks they will bail out. I think the situation is more dangerous than portrayed here.
The FDIC can cover only 1% of all deposits in the US banks. So who do you think will get that 1%? I guess the top 1% as usual. Certainly not little old retired living on social security me. 😢
Toronto Canada CDIC doesnt look in good shape either. I heard they may raise from 100,000. to 200,000. coverage for money, intersting to see how they figure that will work.
The bank crisis isn't over yet, and experienced individuals know credit crises don't end quickly. Some find it amusing that some think it's resolved, but in reality, we're headed for a major economic downturn due to this credit contraction.
In case you need to know what the big three questions to protect your money are, they are: 1. Are you a fiduciary? 2. Is this a segregated account? 3. What's the level of insurance on the account? I made note of this because I need to do this myself and thought I'd share my notes.
Thank you so much! We are just now looking at a fiduciary money manager-I had no idea what other questions to ask-in other words-you don’t know what you don’t know….
Thank You, I couldn't stay awake to take notes. I'm certain those Men enjoyed talking shop for 25 minutes with out a hint where the information associated with the video's title is hidden.
I fall down so many rabbit holes on RUclips and this by far is one of the most valuable videos I’ve ever found! Will be looking at opening a custodial account immediately now! Thanks .
Amazing guest! He was respectful and knowledgeable. Also, This channel is great about avoiding sensationalism and giving info that can actually help me.
Thank you so much for doing this video!!!! I am a young widow of a United States Marine who died for our country. I had to work very, very hard to survive and try to build a retirement. I never understood the difference between a banking account and a custodial account such as Fidelity. I do not trust the banking system as many do not but was sketchy about the custodial accounts that if the banks fail, so would the Fidelities of the world. Now I see not. Once again THANK YOU !
I’ve always prayed a little harder for spouses & children of our military than the service members themselves because they are the unsung heroes! You are on my permanent prayer list-May God bless you and your family!
So sad for your loss, and your struggles. I had a similar situation, a devastating divorce while 55, company went bankrupt, lost my pension. Realized I needed divine help, and truly, God opened doors for me for jobs, in places I wouldn't have know there was a door! He carried my traumatized self for several years, until I started to heal and build my confidence. It all turned out fine. You might want to think about that, too. We all need divine assistance at times. God bless you, my dear! ❤
The fact that Silicon Valley Bank was "asleep" may have been intentional as many experts are warning of a march toward CBDCs. Would love to hear you discuss this real and present danger.
This is just the real mystery that I cannot comprehend - both the bank executives and the depositors as well as the shareholders are all the cream of the crop in educated elite people. I worked in Silicon Valley years ago - there is no lack of education, at Harvard, Stanford, and MIT, just tons of experience and competence. I think they knew what they were doing - operating without a Risk Manager for 9 months. It's some kind of gaming of the system - I just can't accept that they were asleep at the wheel. It is truly incomprehensible.
It's planned out way in advance Sherlock 😅 that's how wealthy transfer wealth all start up was funded by fed back in 2020 with 0% interest in bay area so eod its govt funded money inside game open eyes little more
@@bethfoster4529 I agree. Even Yellen’s statements are astounding coming from a Yale-educated Ph.D. In economics. Is there a combination of hubris and deliberate inattention to detail? Certainly those who are well-educated are without excuse.
The credit Union I was with closed up shop without a word , thank god I got my money out but maybe that’s why I didn’t hear anything . Listen to these guys they are top notch , Schwab
This same private central bank separate from the original treasury division of original republic, lends 90% of deposits at all banks and only allows 10% liquidity which is why none of us can get all of our money at one time--already been given to others.
Thank you for this interview! I wish you had not kept interrupting your guest so we could have heard a lot more high level information from him. I feel you talked more than him and also unintentionally dumbed down this info so it shared little more than we have already learned from the news, etc.
@@TobyMathis thanks so much for receiving my forthright feedback so graciously. You clearly know a lot and have the capability to bring out the best in your guests. I was thrilled for this topic and that you introduced us to this info and knowledgeable guest.
I just called my HR and asked the questions Toby recommended about our 401k manager The Standard. She didn't have an answer!!!! we have over 400 employees and HR had no clue! Man I am glad I watched this video. I am still waiting for an answer from HR.. next step will be maybe to rollover to Charles schwab if they let me! last time i asked they said I had to keep it there until i no longer was employed with the company!!!
I agreed, nobody does!! Why are they left out of the conversation? There are thousands of people that bank with C Unions. And who is giving 4% earned interest on Money Markets. Wish they would be clearer on what $$ Custodians we as their followers can benefit from.
Called Schwab & they told me Custodial accounts are for someone else that you want to put your money in their name for use later, like grandchildren under 18. What did I get wrong from your advice. ??
👍👍👍👍👍 Toby and Stephen thank you so much for this schooling. I'm calling my brokerage firm and bank immediately. Toby, the best info on the web, better than google.
What a confusing discussion. Custodial accounts are for IRAs, unless we're discussing Guardianship accounts. And as far as FDIC insurance, 250K is supposed to be the amount for an individual, but if you have a certain amount of qualified and properly POD'd beneficiaries, it's multiplied by that number, up to maximum of six, I believe. POD registered beneficiaries of a certain family relationship qualify. FDIC used to have all this info on their website and banks used to provide pamhlets on ways to ensure your beneficiaries are covered and your FDIC insurance is maximized. But no one ever discusses this.
Toby deserves a lot of credit for having put out so many videos aimed at lifting the veil, and helping everyone understand more about the markets and the world.
How does an individual create/select the “ right” Schwab Money Market Custodial account? I just moved exposed cash into an Empower Wealth Mgmt Acct insured to 2mm…. But still spread to 250k each bank Acct so probably not custodial? 😮
Why would all of those depositors @ SVB have more than the FDIC insured amount with that one bank, unless somehow they knew ahead of the “incident” that they would be protected and be made whole?
Herd behavior. Nobody would have done that -- if they had read SVB's financials and seen that as of 12/31/2022 management at SVB had lost 94% of the bank's equity (which means that there was very very little buffer between client deposits and clients losing a lot of money). But, they had the "cool bank" vibe -- what could go wrong? =)
Segregation applies only to securities. Custodians are allowed to do cash sweeps to give you interest on that cash -- which is why the SIPC insures accounts (cash included) up to $500k. The $150mm protection by Lloyds of London that Schwab has in place, applies to the first $1.15mm in cash and up to $150mm in total (where the value above $1.15mm in cash needs to be held in securities, which your investment into the correctly chosen money market fund counts as a security). That help?
The video says Silicon Valley bank could have hedged their bet but did not explain exactly how the bank could have hedged. I'd like to know specifically how the bank could hsve hedged?
There are a whole host of ways they could have hedged. But most likely, the best option would have been to enter into laddered swaps whereby they pay a fixed rate and received floating...those swaps would have risen in value as interest rates went up, offsetting losses in their bond portfolios. There's a lot of detail that goes into implementing a bond portfolio interest rate immunization strategy but at a high level, that's what they would have done -- and they would have entered into swaps that matched the lengths of their bonds so that they were protected for the duration of their ownership.
I did chuckle just a bit about the fiduciary title. I appreciate the legal aspect as described, and Toby has been an excellent teacher to me as well. The reason I had to chuckle to myself was that Bernie Madoff was also a fiduciary , correct?
I don't think in this mass failure case an insurance company can even save us. An insurance company banks on that only a small percentage will ever fail and the remaining will continue to produce income to cover. However with mass failure, their money is also at risk and it would be lost. The mattress is our best bet
Insurance is window dressing. I would focus first on the core structural issues (differences) between banks and custodians. It is the segregated accounts that make the difference.
@@stefanwhitwell1420you are SO WRONG. ALL THIS IS TOTAL TOSH. ANY account, Any account is a total and utter waste of time. There's NOTHING in it, NOTHING. You can only ever be a creditor on a leger sheet of any banking institution.
@kp3509 out of ALL the comments on here YOU are the only person that I've seen that understands. All the rest are idiots, lambs to the slaughter. Respect to you and shame on the people who put this trash out.
I have a money market account at fidelity, aside from my IRA. Is that money market account a custodial account? I think I was told that it’s SIPC insured
Their is no safety being in fiat money, nobody is going to insure you against loss of purchasing power. Through inflation, one weekend this whole pile will come crashing down, keep your money in physical metals in your house. Forget yield, preserve your wealth.
Agree! Much better to have your money invested, but corporates and venture companies often have a lot of cash that sits around -- for relatively good reason: you don't want to put cash you will need or may need in an operating capacity at risk etc, so there the goal is to do your best with near zero risk etc. But, I think your overall point is right -- stay invested, safer than cash!
Over my sixty years i've had three banks who closed out and left with my money. Two banks who actually gave my money to the wrong person. None of which I ever got back.
I loved my time at Wharton. Temple is another great school. All schools are the same in the sense that you only get out what you put in...old fashioned blood, sweat and tears =)
Ok, so if we were living in normal times where regulators were interested in upholding the law, a custodian bank would be the right move. But the the most well known and respected custodian bank in the world was Credit Suisse, and look at how that’s turned out. We’re living in unprecedented times and so nothing is what it appears to be. Diversifying funds (with an operations account and assets) seems to be the only strategy here and even then, it won’t be foolproof
Well, actually, Credit Suisse was NOT primarily a custodian. It made most of its money through banking and investment banking -- taking risk. They kind of tried to imply that your money was safe with them because they were a big bank and they were Swiss, but...we all know how that worked out.
If you instruct the bank on how you want them to handle your money, such special deposits, they can't just do what they want with your money. There's advantages to having a bank if you understand credit. A lot of people need to understand UCC Article 9 secured transactions. This is a credit base system. Everything is credit. But I do agree you should have a custodial account because same elements apply
The comment on custodians is wrong. I advised financial advisors for decades. Read the Great Taking available free online. The comments on insurance are BS as well. DISCLAIMER This is not financial advice DYOR.
Toby, loved this video but I’m very confused about opening a custodial account. Schwab explained to me that a custodial account can be managed by me but it’s in name of a minor???what am I missing? Thanks
So is he saying we need to move the money into something like Vanguard or Charles Schwab, and then just leave it in there? Or do we need to move it, then invest in something like mutual funds, ETF's, etc.? Because what if I don't want to invest the money because the markets are garbage? Thank you!
Wasn't telling you what to do with your money. Just saying that if you have cash or cash equivalents that you want to keep in cash (for your own reasons), the safest place to keep it is in a custodian like Schwab. However, since inflation is still higher than the interest you get, my personal view is that it is best to keep it invested in strategies that stay ahead of inflation to protect the buying power of your dollar. However, there are times and are situations where you may need or want to keep a greater portion of your wealth in cash -- and I was just explaining how, in those situations you can best protect the cash you've got. Make sense?
@@stefanwhitwell1420 yes makes sense, but does Schwab sweep cash into a bank account? Can I ask that my cash not be swept into an outside bank? Now it gets confusing. Thank you for this video. The information was needed and timely. You are easy to understand wish you were my advisor.
Thank you very much for this SUPPER informative video!!! Now knowing about segregated money, and custodial accounts, I will make some changes, and sleep better at night🌛 Thanks again for helping everyone navigate the Crazy times ahead! Regards.
Just curious… What are his ties to Charles Schwab? It was mentioned that his fiduciary nature, but that’s the name he kept throwing around. I’m glad that you made a comment about that.
The FDIC has less the 1% of the funds necessary to indemnify insured depositors. Considering the financial climate today, someone would have to be a fool to believe that their deposits are fully insured to an amount at or below 250K.
Like I said, I think that having Lloyds provide additional guarantees is just window dressing. What protects people is the fact that assets are held in segregated accounts. Hard to imagine in what situation Lloyds would ever actually have to pay because even if Schwab went bankrupt, and all Schwab equity holders lost all their money, the segregated accounts would be fine. So more than the insurance, you really need to stay focused on the core structure itself.
Chris, great question. Devil is in the detail. You need to read the prospectus for the money market fund and also recommend looking at their current holdings, which can also help you understand what they are actually investing in since prospectuses often given them wide latitude.
The problem is that the FDIC now only has about 2 million left to cover people. This is from all the banks that have collapsed already. It's been estimated that with all the accounts sitting around in Banks be 2.4 trillion dollars. Therefore the FDIC does not have the money to cover everyone.
How about opening a treasury direct account and buy short term T-Bills. Should be safe until government defaults. Can also buy these directly through Fidelity etc.
My bank prepared a letter assuring customers they're not going to be effected, BUT they told me that because my accounts (except one) are held in a Trust with 3 beneficiaries that equals $250,000 FDIC protection up to 4 x 250,000 IF all are members. What are your thoughts?
Having to depend on letters they write worries me in general -- and -- the devil is in the detail, so I'd get an attorney to verify that what they are claiming is in fact how the FDIC operates. Much easier alternative is to use one of the bigger custodians.
Good question! I do not have a Trust, but one POD and my bank (key) told me it is $250K, plus another $250K for POD. I personally didn't believe it, so I never followed up on researching the answer.
Yes my bank told me $250,000.00 per person on the account for example joint account insured for $ 500k (2) for the 2 on the account. Hope it’s the right information.
Sign up for a FREE 45-minute consultation to receive asset protection and tax-saving tips. 👉 aba.link/f378a1
I just heard on Rich Dad that if bank runs become systemic, the FDIC can only fund at a rate of 0.03%. Also, Janet Yellen in a congressional hearing said that she and other people at the Fed will decide which banks they will bail out. I think the situation is more dangerous than portrayed here.
Ummm kinda world govt is in place cbdc to enslave all...FED NOW NEXT
Saw the same program. I'm small fry but still loosing confidence in the Dollar itself.
The FDIC can cover only 1% of all deposits in the US banks. So who do you think will get that 1%? I guess the top 1% as usual. Certainly not little old retired living on social security me. 😢
I don't have much anyway but only leave a small amount in the bank.
Toronto Canada CDIC doesnt look in good shape either. I heard they may raise from 100,000. to 200,000. coverage for money, intersting to see how they figure that will work.
The bank crisis isn't over yet, and experienced individuals know credit crises don't end quickly. Some find it amusing that some think it's resolved, but in reality, we're headed for a major economic downturn due to this credit contraction.
In case you need to know what the big three questions to protect your money are, they are: 1. Are you a fiduciary? 2.
Is this a segregated account? 3.
What's the level of insurance on the account?
I made note of this because I need to do this myself and thought I'd share my notes.
Thank you so much! We are just now looking at a fiduciary money manager-I had no idea what other questions to ask-in other words-you don’t know what you don’t know….
Thank you for setting that up perfectly
Thanks so much!
Thank you
Thank You, I couldn't stay awake to take notes. I'm certain those Men enjoyed talking shop for 25 minutes with out a hint where the information associated with the video's title is hidden.
I fall down so many rabbit holes on RUclips and this by far is one of the most valuable videos I’ve ever found! Will be looking at opening a custodial account immediately now! Thanks .
You, like everyone else who's watched this total CRAP are being sucked in.... go find the REAL TRUTH - QUICKLY
Amazing guest! He was respectful and knowledgeable.
Also, This channel is great about avoiding sensationalism and giving info that can actually help me.
Thank you so much for doing this video!!!! I am a young widow of a United States Marine who died for our country. I had to work very, very hard to survive and try to build a retirement. I never understood the difference between a banking account and a custodial account such as Fidelity. I do not trust the banking system as many do not but was sketchy about the custodial accounts that if the banks fail, so would the Fidelities of the world. Now I see not. Once again THANK YOU !
So sorry for your loss 🇺🇸
I’ve always prayed a little harder for spouses & children of our military than the service members themselves because they are the unsung heroes! You are on my permanent prayer list-May God bless you and your family!
So sad for your loss, and your struggles. I had a similar situation, a devastating divorce while 55, company went bankrupt, lost my pension.
Realized I needed divine help, and truly, God opened doors for me for jobs, in places I wouldn't have know there was a door! He carried my traumatized self for several years, until I started to heal and build my confidence.
It all turned out fine. You might want to think about that, too. We all need divine assistance at times. God bless you, my dear! ❤
The fact that Silicon Valley Bank was "asleep" may have been intentional as many experts are warning of a march toward CBDCs. Would love to hear you discuss this real and present danger.
This is just the real mystery that I cannot comprehend - both the bank executives and the depositors as well as the shareholders are all the cream of the crop in educated elite people. I worked in Silicon Valley years ago - there is no lack of education, at Harvard, Stanford, and MIT, just tons of experience and competence. I think they knew what they were doing - operating without a Risk Manager for 9 months. It's some kind of gaming of the system - I just can't accept that they were asleep at the wheel. It is truly incomprehensible.
@@bethfoster4529 Exactly. It's frustrating when the common person can see the problem the experts won't address.
@@bethfoster4529 Thank you for that information.
It's planned out way in advance Sherlock 😅 that's how wealthy transfer wealth all start up was funded by fed back in 2020 with 0% interest in bay area so eod its govt funded money inside game open eyes little more
@@bethfoster4529 I agree. Even Yellen’s statements are astounding coming from a Yale-educated Ph.D. In economics. Is there a combination of hubris and deliberate inattention to detail? Certainly those who are well-educated are without excuse.
My question: why are credit unions not being mentioned in all this bank crisis stuff? Do they have some other or better protection than the others?
I also would love to see a response to this...TY D Crump
Keep posting your question. I will post this question in more recent videos as I want to know as well.
The credit Union I was with closed up shop without a word , thank god I got my money out but maybe that’s why I didn’t hear anything . Listen to these guys they are top notch , Schwab
Loyds of London , 150million per account insured
This same private central bank separate from the original treasury division of original republic, lends 90% of deposits at all banks and only allows 10% liquidity which is why none of us can get all of our money at one time--already been given to others.
It's called "fractional reserve banking". At some point. It will come down. It's inevitable.
Great info about "what to do" now, particularly the difference between a bank and a custodian!
This is the first video of yours that I've seen. It's incredibly helpful. Thank you!
Thank you for this interview! I wish you had not kept interrupting your guest so we could have heard a lot more high level information from him. I feel you talked more than him and also unintentionally dumbed down this info so it shared little more than we have already learned from the news, etc.
Thanks for the feedback Laila. Appreciate the good with the bad and will strive to do better.
@@TobyMathis thanks so much for receiving my forthright feedback so graciously. You clearly know a lot and have the capability to bring out the best in your guests. I was thrilled for this topic and that you introduced us to this info and knowledgeable guest.
He’s a class act
This is a CLOWN SHOW
I just called my HR and asked the questions Toby recommended about our 401k manager The Standard. She didn't have an answer!!!! we have over 400 employees and HR had no clue! Man I am glad I watched this video. I am still waiting for an answer from HR.. next step will be maybe to rollover to Charles schwab if they let me! last time i asked they said I had to keep it there until i no longer was employed with the company!!!
Lived this presentation. Honest & relaxed conversation about a stressful situation. Don't need a 1929 repeat. Thanks for the insight👍❤️
Thanks for the kind words! And agree -- the last thing we need, especially after the last three, is a repeat of 1929 LOL!
Thank you so much. I have been looking for this type of information for years. I am so grateful.
We hope our information if helpful to you!
If a run on ANY bank could happen because of a few Internet posts, then all banks need to be adaptive and ready for a run on them!
Toby can you make a video of what you think about cbdc and what the alternatives can be
Thanks for the great video. I have a question. How do I know if a money market account is safe one versus the ones that buy riskier assets? Thanks
Great question. That's what folks hire us to help them with!
Why doesn’t anyone ever mention credit unions?
I agreed, nobody does!! Why are they left out of the conversation? There are thousands of people that bank with C Unions.
And who is giving 4% earned interest on Money Markets. Wish they would be clearer on what $$ Custodians we as their followers can benefit from.
Is our money safe in a credit union , or is the risk the same as a bank, ?
@@jim.zuzukiz3583 20:36
Years
@@marshasimpson3453 Mostly internet banks are offering 4% on MMs and 5% CDs. Some examples: Bread Savings, Capital1 Bank, Live Oak Bank, etc.
From what I personally have garnered, is that CU's are the SAME as banks....absolutely operated the same. Ppl are leaving CU's like they are banks.
Called Schwab & they told me Custodial accounts are for someone else that you want to put your money in their name for use later, like grandchildren under 18.
What did I get wrong from your advice. ??
👍👍👍👍👍 Toby and Stephen thank you so much for this schooling. I'm calling my brokerage firm and bank immediately. Toby, the best info on the web, better than google.
Great information! Thanks for sharing this with your listeners, as I will be moving my money to safer places.
This old lady says a BIG THANK YOU❗😊
You made our day! Thanks for the kind words.
Are we all not being hearded into the major banks and brokerages..??
Just saying.
Very clear and valuable information. Thank you.
What a confusing discussion. Custodial accounts are for IRAs, unless we're discussing Guardianship accounts. And as far as FDIC insurance, 250K is supposed to be the amount for an individual, but if you have a certain amount of qualified and properly POD'd beneficiaries, it's multiplied by that number, up to maximum of six, I believe. POD registered beneficiaries of a certain family relationship qualify. FDIC used to have all this info on their website and banks used to provide pamhlets on ways to ensure your beneficiaries are covered and your FDIC insurance is maximized. But no one ever discusses this.
Toby every video you make is gold, pure GOLD? 👍🤠
Thanks for watching!
Toby deserves a lot of credit for having put out so many videos aimed at lifting the veil, and helping everyone understand more about the markets and the world.
How does an individual create/select the “ right” Schwab Money Market Custodial account? I just moved exposed cash into an Empower Wealth Mgmt Acct insured to 2mm…. But still spread to 250k each bank Acct so probably not custodial? 😮
Why would all of those depositors @ SVB have more than the FDIC insured amount with that one bank, unless somehow they knew ahead of the “incident” that they would be protected and be made whole?
Herd behavior. Nobody would have done that -- if they had read SVB's financials and seen that as of 12/31/2022 management at SVB had lost 94% of the bank's equity (which means that there was very very little buffer between client deposits and clients losing a lot of money). But, they had the "cool bank" vibe -- what could go wrong? =)
Because most of them were businesses and they were using the accounts as working capital!
Interesting Kramer pm MSNBC was saying buy SVB stock back in February. I would not trust what he ever says anymore
The real wonder is how any of you believe you are protected on less than $250,000!
Great interview Toby! Greetings from Michigan.
Toby you're my new favorite RUclips channel...making all of this simple to understand. Been watching your other videos..learning for sure. Thank you.
Appreciate the support
Thank You, Toby. This is EXTREMELY HELPFUL!!!! May God Absolutely Bless you and Mr. Whitwell.😊😊
Glad it was helpful!
FDIC insures only per individual one time NOT per bank account !
Many people don't know that. If you are in only 1 bank be sure and have spouses and childrens names 1 each at every $250k level.
Wow ! Found this to be very informative and in layman language. Learned a lot n will definitely be sharing this video with family. Thank you so much !
thank you so much. segregation only applies to cash correct? just wondering if this would apply to stock holdings. tnx again :)
Segregation applies only to securities. Custodians are allowed to do cash sweeps to give you interest on that cash -- which is why the SIPC insures accounts (cash included) up to $500k. The $150mm protection by Lloyds of London that Schwab has in place, applies to the first $1.15mm in cash and up to $150mm in total (where the value above $1.15mm in cash needs to be held in securities, which your investment into the correctly chosen money market fund counts as a security). That help?
@@stefanwhitwell1420 yes, thank you, making more sense.
The video says Silicon Valley bank could have hedged their bet but did not explain exactly how the bank could have hedged. I'd like to know specifically how the bank could hsve hedged?
There are a whole host of ways they could have hedged. But most likely, the best option would have been to enter into laddered swaps whereby they pay a fixed rate and received floating...those swaps would have risen in value as interest rates went up, offsetting losses in their bond portfolios. There's a lot of detail that goes into implementing a bond portfolio interest rate immunization strategy but at a high level, that's what they would have done -- and they would have entered into swaps that matched the lengths of their bonds so that they were protected for the duration of their ownership.
Loved the fiduciary info!
Glad you enjoyed it!
I did chuckle just a bit about the fiduciary title. I appreciate the legal aspect as described, and Toby has been an excellent teacher to me as well. The reason I had to chuckle to myself was that Bernie Madoff was also a fiduciary , correct?
Thank you is an understatement!
Thank you for watching! 😄
Thank you Toby. It is appreciated!
I don't think in this mass failure case an insurance company can even save us. An insurance company banks on that only a small percentage will ever fail and the remaining will continue to produce income to cover. However with mass failure, their money is also at risk and it would be lost. The mattress is our best bet
Insurance is window dressing. I would focus first on the core structural issues (differences) between banks and custodians. It is the segregated accounts that make the difference.
@@stefanwhitwell1420you are SO WRONG. ALL THIS IS TOTAL TOSH. ANY account, Any account is a total and utter waste of time. There's NOTHING in it, NOTHING. You can only ever be a creditor on a leger sheet of any banking institution.
@kp3509 out of ALL the comments on here YOU are the only person that I've seen that understands. All the rest are idiots, lambs to the slaughter. Respect to you and shame on the people who put this trash out.
I have a money market account at fidelity, aside from my IRA. Is that money market account a custodial account? I think I was told that it’s SIPC insured
I used to train jiu-jitsu with Stefan. Great dude.
I pulled out cash then the rest in t-bills and 10k in i-bonds. The t-bills are very convenient. The i-bonds are locked for 1 year.
Their is no safety being in fiat money, nobody is going to insure you against loss of purchasing power. Through inflation, one weekend this whole pile will come crashing down, keep your money in physical metals in your house. Forget yield, preserve your wealth.
Great video very informative
Thank You!
Good information but I'd rather have bullion or a gold backed Roth. 4% barely outpaces inflation.
Agree! Much better to have your money invested, but corporates and venture companies often have a lot of cash that sits around -- for relatively good reason: you don't want to put cash you will need or may need in an operating capacity at risk etc, so there the goal is to do your best with near zero risk etc. But, I think your overall point is right -- stay invested, safer than cash!
Yep, except 4% doesn't outpace today's inflation of > 6%.
I have my retirement on an annuity @ 6% or above of market does better felt safer at my age.
Thanks for this video. What is the difference between such a custodial account compared to an IRA?
What about the Credit Union Banks ..Are they safer or not ? I didn't hear anything referring to that..
Credit Unions are just friendly nicer versions of banks -- same risks as a bank.
Over my sixty years i've had three banks who closed out and left with my money. Two banks who actually gave my money to the wrong person. None of which I ever got back.
Thank you so much for this information!!
Have you read “The Great Taking” by David Rogers Webb? Curious if the advice would change after that knowledge.
Excellent information provided.
What if there is no protection for old dollars that are all useless overnight???. Out with the old in with the digital!!!
Thank ya. Audio quiet but manageable
I agree, would be easier to understand if volume was louder. I could only understand everything because I turned CC on.
No shade on this guy but I had a friend who went to Wharton and left to go to Temple. Learned a lot more.
I loved my time at Wharton. Temple is another great school. All schools are the same in the sense that you only get out what you put in...old fashioned blood, sweat and tears =)
Ok, so if we were living in normal times where regulators were interested in upholding the law, a custodian bank would be the right move. But the the most well known and respected custodian bank in the world was Credit Suisse, and look at how that’s turned out. We’re living in unprecedented times and so nothing is what it appears to be. Diversifying funds (with an operations account and assets) seems to be the only strategy here and even then, it won’t be foolproof
Well, actually, Credit Suisse was NOT primarily a custodian. It made most of its money through banking and investment banking -- taking risk. They kind of tried to imply that your money was safe with them because they were a big bank and they were Swiss, but...we all know how that worked out.
Great guest, wish you would have let him speak more.
Sorry Randy - will try to sit back next time. Burning issue with lots of nuances.
Can I get a list of custodial bank accounts
Where is the safest place to buy guild and silver to get the best or real price?
Local coin shops. 🙂
If you instruct the bank on how you want them to handle your money, such special deposits, they can't just do what they want with your money. There's advantages to having a bank if you understand credit. A lot of people need to understand UCC Article 9 secured transactions. This is a credit base system. Everything is credit. But I do agree you should have a custodial account because same elements apply
Can social security checks be put into anything other then a bank ?
Take it right out after you pay bills, if there is any left
Absolutely the best information , Thanks again and always an education.
Is E Trade a custodian?
Not to mention SVB’s risk manager left with $7.1 million, 6 months prior.
The comment on custodians is wrong. I advised financial advisors for decades. Read the Great Taking available free online. The comments on insurance are BS as well. DISCLAIMER This is not financial advice DYOR.
Thank you Guys 😊
Thank you too! We appreciate you taking the time to watch us!
Toby, loved this video but I’m very confused about opening a custodial account. Schwab explained to me that a custodial account can be managed by me but it’s in name of a minor???what am I missing? Thanks
Good info but if a bank run happens none of this stuff matters.. Does it?
So is he saying we need to move the money into something like Vanguard or Charles Schwab, and then just leave it in there? Or do we need to move it, then invest in something like mutual funds, ETF's, etc.? Because what if I don't want to invest the money because the markets are garbage? Thank you!
Wasn't telling you what to do with your money. Just saying that if you have cash or cash equivalents that you want to keep in cash (for your own reasons), the safest place to keep it is in a custodian like Schwab. However, since inflation is still higher than the interest you get, my personal view is that it is best to keep it invested in strategies that stay ahead of inflation to protect the buying power of your dollar. However, there are times and are situations where you may need or want to keep a greater portion of your wealth in cash -- and I was just explaining how, in those situations you can best protect the cash you've got. Make sense?
@@stefanwhitwell1420 yes makes sense, but does Schwab sweep cash into a bank account? Can I ask that my cash not be swept into an outside bank? Now it gets confusing. Thank you for this video. The information was needed and timely. You are easy to understand wish you were my advisor.
Great video info for our times. Easy to understand and how to move FWD. I shared. Thank u. 🎉😅😊
Thanks for sharing Sami
Thank you very much for this SUPPER informative video!!!
Now knowing about segregated money, and custodial accounts, I will make some changes, and sleep better at night🌛
Thanks again for helping everyone navigate the Crazy times ahead!
Regards.
thanks so much mr. matthis
What about custodian accounts? I called Schwab & was told any custodian account would have to be someone (relative) name??
Thanks Toby!!
Toby you are a Genius.Thanks
Thanks for watching!
Be sure you only have the FDIC insured maximum in any bank. And don’t buy Bitcoin?
In 2022 my local credit union Redstone Federal Credit union lost 192 million dollars... Should I be concerned....
That's a lot of money for a CU to lose. What generated that loss? Was it a cash loss or a non-cash accounting loss?
Just curious… What are his ties to Charles Schwab? It was mentioned that his fiduciary nature, but that’s the name he kept throwing around. I’m glad that you made a comment about that.
THANK YOU! THANK YOU SO MUCH!!! I REALLY NEEDED THIS VALUABLE INFORMATION... GREAT JOB :>)
The FDIC has less the 1% of the funds necessary to indemnify insured depositors. Considering the financial climate today, someone would have to be a fool to believe that their deposits are fully insured to an amount at or below 250K.
The FDIC is hoping no more than 1% will want their money back.
And what is the ability of Lloyd's of London having the funds to protect everyone at Schwab? Look deeper, folks. Please.
Like I said, I think that having Lloyds provide additional guarantees is just window dressing. What protects people is the fact that assets are held in segregated accounts. Hard to imagine in what situation Lloyds would ever actually have to pay because even if Schwab went bankrupt, and all Schwab equity holders lost all their money, the segregated accounts would be fine. So more than the insurance, you really need to stay focused on the core structure itself.
How many properties do you need to put in a living trust?
So if your money is sitting in a Vanguard Account or and ETrade account, it is your money?
In the UK we have 85k cash protected I have the rest in stocks and property
How to tell what kind of money market does not risk principal ?
Chris, great question. Devil is in the detail. You need to read the prospectus for the money market fund and also recommend looking at their current holdings, which can also help you understand what they are actually investing in since prospectuses often given them wide latitude.
Is a credit union the same as a bank as for your money being safe?
Same problem. Friendlier and more likable institution by category, but same issues.
Good stuff. Thank you!
The problem is that the FDIC now only has about 2 million left to cover people. This is from all the banks that have collapsed already. It's been estimated that with all the accounts sitting around in Banks be 2.4 trillion dollars. Therefore the FDIC does not have the money to cover everyone.
How about opening a treasury direct account and buy short term T-Bills. Should be safe until government defaults. Can also buy these directly through Fidelity etc.
I just logged on to my Schwab account and it said in bold print NOT FDIC insured.
Schwab's custodian's accounts are protected by SIPC and by Lloyds of London. FDIC is for banks.
SIPC insured?
The Lloyd’s of London protection at Schwab has a limit it will pay of $600 million for all accounts combined.
Thanks I am opening a custodial acct asap
My bank prepared a letter assuring customers they're not going to be effected, BUT they told me that because my accounts (except one) are held in a Trust with 3 beneficiaries that equals $250,000 FDIC protection up to 4 x 250,000 IF all are members. What are your thoughts?
Having to depend on letters they write worries me in general -- and -- the devil is in the detail, so I'd get an attorney to verify that what they are claiming is in fact how the FDIC operates. Much easier alternative is to use one of the bigger custodians.
Good question! I do not have a Trust, but one POD and my bank (key) told me it is $250K, plus another $250K for POD. I personally didn't believe it, so I never followed up on researching the answer.
The FDIC website has this info. It’s per person on the trust. Each is insured up to 250k. We just verified this last week.
Yes my bank told me $250,000.00 per person on the account for example joint account insured for $ 500k (2) for the 2 on the account. Hope it’s the right information.
What about NCUA coverage thru credit unions?
Schwab ? They having trouble now too . Try another . Maybe Fidelity
did I miss which money market account doesn't put the principal at risk?
where can we get these segregated custodial accounts from? any examples of who to talk to
.
Very useful info, thank you!
How does the new digital program that were looking at going into effect all of this?