I have an uninsured investment account at a major bank. I'm concerned that leaving it there is risky if the economy takes another dive. Can you advise what else I can do with it?
I am 68 years old. Thank you,
Answers | 6
Are you seeking FDIC insurance on this account? FDIC insurance covers all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) accounts, savings accounts, money market deposit accounts (MMDA), time deposits such as a certificate of deposit (CD), or an official item issued by a bank, such as a cashier's check or money order.
Investment accounts like stocks, etc. are not FDIC insured.
Most importantly, we need to establish what your needs are financially. I see you are reporting age 68. We have folks of all ages, for example, 20-year olds living like they are 80 and 80-year olds living like they are 20. You decide your lifestyle. Our job is to eliminate risk and make certain you have the financial means to enjoy your lifestyle.
Now, why was this account set up (its purpose) and what do you now want to use it for (i.e. retirement, vacation, shopping, etc)?
There are lots of directions we can take. So, please send me a private message or post here (if you are comfortable doing so) with the particulars - like the current value of the account, how much time you can give us to increase its value, and what amount you would like it to become (realistically and meaningfully).
Hope this helps.
It's not what you make; it's what you keep that determines your lifestyle.
I am a big proponent of keeping investments liquid and protected and would be more than happy to give you proper guidance.
Investment accounts are fully exposed to market conditions, which may work well in a rising market. If you're concerned that the market may take another dive, there are several options for you to consider that offer principal protection. Determining the appropriate investment vehicle with these features requires an in-depth review of your risk tolerance, financial objectives, liquidity requirements and time horizon.
We help people address concerns like this every day. We would be happy to discuss this matter with you. Please contact us directly with a private message through our listed contact information and we'll help you find the best plan of action to achieve your goals.
Eric Maclean, ChFC®, CLU®