Best Way To Stash 500k In Banks?

[Dan1]

So I am a total noob to having large amounts of money.

I have 500k that I made from affiliate marketing(already paid taxes).

What should I do with it to just leave it in the bank and know that it is safe?

Right now I have around 300k sitting in Bank Of America (checking and savings account) and 200k in a local credit union(checking and savings account) in the middle of nowhere where I live.

I should obviously split it up so there is no more than 250k in an account because of the FDIC insurance policy- but is there any security benefit to using a certain type of bank/credit union/whatever over another one?

Any advice from those who know would be appreciated.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[AgainstAllOdds]

1. Buy an asset.
2. Have the asset make you money.
3. Use that money to grow your number of assets.
4. Repeat.
5. Retire.

Edit: Hopefully I'm wrong ... but I'm 90% sure that this is slowly going to turn into OP promoting his system for making $500k while being a noob. Then selling some sort of course or ebook. Once again - hope I'm wrong.

 

[Dan1]

No I'm serious. No promotions here.

Anyways if anybody has any advice on the banking let me know. I thought I saw somebody saying they stashed 250k in 11 different credit unions or something. Wasn't sure if there was a benefit to using a credit union or a certain type of bank? I don't know. I'm planning on getting another account with a national bank and then have the money in Bank Of America and some other national bank. Would this be the way to go?

(@AgainstAllOdds I wanna keep this thread focused on the banking right now- buying an asset is a whole different topic)

 

[AgainstAllOdds]

No I'm serious. No promotions here.

Anyways if anybody has any advice on the banking let me know. I thought I saw somebody saying they stashed 250k in 11 different credit unions or something. Wasn't sure if there was a benefit to using a credit union or a certain type of bank? I don't know. I'm planning on getting another account with a national bank and then have the money in Bank Of America and some other national bank. Would this be the way to go?

(@AgainstAllOdds I wanna keep this thread focused on the banking right now- buying an asset is a whole different topic)

Start off by reading the book: The Millionaire Fastlane .

After that, feel free to split your money up between accounts. But also start keeping an eye out for a scalable business or investment.

Keeping your money in a bank account is only good for optionality ... meaning that you have the option of investing it in something good that comes along. Other than that, it just slowly depreciates (interest rate - inflation).

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Dwight Schrute]

Best way to stash 500k?

In brick form. Little bricks made out of gold

 

[Chaseb731]

@GlobalWealth

 

[MEAH]

wonder how many PM's asking "what kind of affiliate marketing did you do?"

whats the over/under #?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[100k]

Park your money in real estate, bonds and stocks. Also consider getting a life insurance policy if you don't already have that.

 

[Kingmaker]

Strong first post.
Strong lack of proof.
I'll have that WSO now OP.

 

[Ecom man]

I would never stash any amount of money(over a few thousand) in anything not making money. Why would you want to lose money each and every year because of inflation?

If that is your choice, a good option to spread your risk would be cdars. http://www.cdars.com/ It is an easier way to spread your money among many banks without all the hassle. Of course the ultimate decision is yours and no one on this forum or any other can tell you exactly what is best in your situation.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Polarbeans]

Came here looking for a douche

 

[GuestUser113]

Park your money in real estate, bonds and stocks. Also consider getting a life insurance policy if you don't already have that.

Super cereal guy "I wanna keep this thread focused on the banking right now- buying an asset is a whole different topic"

manbearpig

 

[smartman]

I'll hold it for you.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Digamma]

I think you should get a professional opinion about this. And of course invest.

Now, why don't you share something about how you did put this stash together with affiliate marketing? I'm sure your expertise could help many people here.

 

[ZCP]

If you have $500k post tax, it is time to educate yourself on having your money work for you. Portion in a cash flowing asset, portion in a high yield account for emergency fund, portion with a recommended money manager ( and ask them LOTS of questions) will get you started. Up to you to make it work effectively.

Don't just blow this off. You made a sizable sum and worked hard for it. Guard and treat it right. Suggest reading The Richest Man in Babylon.

 

[wade1mil]

I remember someone here with money saying stash it in a bank until you know how to invest it. Low risk and low interest is better than high risk and high interest when you don't know what you're doing.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[SteveO]

I usually stash the money in a money market account with 2-3 different banks. Shop the banks to find out what free perks that they give you at certain levels of deposits. They don't give you much but the "high value" customer can usually get you a couple of freebies.

 

[James Thornton]

From the book:

“A saved dollar is the best passive income instrument.”

“The rich leverage compound interest at its crest, applied against large sums of money.”

Isn't the end goal of the book to stack up a mountain of cash with a fast lane business and eventually become a net lender? Saving, eventually, is the investment.

The big worry of the thread starter is protection. Standard accounts are insured up to $250k. But isn't there a type of account for larger sums of money, that is also insured, but has some caveats that protect the bank as they lend out the money? Thought I read about something along those lines.

 

[Jack Turner]

When I reach 500k I will likely invest around 250k in a variety of HEAVILY researched ventures with various rates of interest and risk, put 100k a low-yield low risk fund of some kind (or a bank, this is just an emergency fund, not really for making money). With the remaining 150k I would likely invest into a startup that fulfils the commandments, a specific product that requires funding for example (like the snuggie) in order to work towards a larger, more leveragable sum.

Though I think your question isn't asking what to do with the money but where to put the money while keeping it liquid, honestly I would just diversify across many banks, the freebies that are mentioned won't mean anything if the bank fails, sure you might be insured but it's not worth the headache. $50,000 per bank would be my limit, I mean when it comes to business focus is great but when it comes to holding cash I believe diversification is the key.

Ask a professional however, I'm an 18 year old high school dropout so to be fair I wouldn't listen to me (yet).

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Dan1]

Thanks for all the replies, I still have to go over them in detail to see everything that was said.

Of course I want to buy assets and have that money work for me, but honestly I'm f**** scared of doing it, because I know nothing about it, and feel like you need to spend a lot of time studying anything to be successful at it. At the moment I am just trying to stash the cash safely while I focus on trying to get more with the same method.

I may make a post on the affiliate marketing but it's just pretty straightforward stuff that I do. Of course there are specific niches and what not that I have but I can't exactly expose those.

So no difference what type of bank it is(or credit union, whatever) as long as it is FDIC insured?

 

[SteveO]

Of course I want to buy assets and have that money work for me, but honestly I'm f**** scared of doing it, because I know nothing about it, and feel like you need to spend a lot of time studying anything to be successful at it.

Let's see if I can rephrase this. "Of course I plan on purchasing income producing assets at some point. I plan on educating myself first before I jump in so I can be successful at it".

Just simply remove the words "fear" and "scared" from your vocabulary.

You are smart to take this approach!

 

[RBefort]

You were probably scared several times in your life. It's not like you are going to take your 500k and park it into some asset you know nothing about. You are going to start doing your research and learn from other people, just like you did to learn affiliate marketing. You'll then (slowly) invest small amounts at a low risk into things that provide you passive income into the future. Just be sure you're getting some type of interest and your money is protect somehow until then. But work quickly to find other ways to invest that produce more than .8% APY. You have a chance being so young to set yourself up your a life stream of income. If you don't want to mess with research, get with extremely, extremely credentialed Real Estate Investors with a long term plan for success. Everyone is always looking for money to do bigger and better things in this world; and not for greed.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[ZCP]

Focus on making another $500k using the same techniques. See my post above.... park some, tryout a money manager w/ some, etc.

Want a shortcut? Email your insurance agent, banker, accountant, and lawyer w/ the same question you listed above...... you then pick and choose a couple of the options and GET BACK TO WORK!

 

[biophase]

I would split the money into 2-3 banks. There is NOTHING wrong with parking it and not doing anything with it for a few years. It is better to lose 1-3% due to inflation than to lose 30% on a shitty investment. Even if you did absolutely nothing with it, you will be way further ahead in life knowing that you have enough to live on for 10 years.

As ZCP said. You can park it and then make another $500k the same way. Don't listen to the people who say that you are losing money if you don't invest it. If you are good at IM and can make $500k after taxes, it's probably better for you to spend your next years doing that than learning about investing. Many people are good at making money and then lose it because they are bad at investing.

 

[MJ DeMarco]

Did you guys hear the story about Ivan the Inventor????

He invented a machine that prints $100 bills every few hours, depending on how hard he cranks his machine.

His roommate, Jim, was amazed. After 2 years, Ivan has printed $500,000 and seems to be on his way to financial independence.

After some time, Jim notices that Ivan stops printing money.

His machine starts collecting dust and then he sees why: Ivan is building a new invention.

Curious Jim asks, "Hey Ivan, what are you doing? Building a new money machine?"

Ivan responds "Yup, you got it!"

Jim nods his head and says "Awesome, man, how long will it take you to build? And what will this one print?"

Ivan responds: "Hmmm, it should take me about 30 years to build. Oh, and this one? It mints pennies."

.
.
.
.
.
.
.
.
.
.
.
.
.

As ZCP said. You can park it and then make another $500k the same way. Don't listen to the people who say that you are losing money if you don't invest it.

+1.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Dan1]

Yeah I guess I am going to find more banks then. Thanks for all the replies- you guys are a great help. Should I use a specific type of bank or what(national bank, random local CU, etc.)? Nobody really mentioned anything about this part so I just wanted to throw it out there one last time. I am a bonehead about any of this type of stuff.

 

[biophase]

Yeah I guess I am going to find more banks then. Thanks for all the replies- you guys are a great help. Should I use a specific type of bank or what(national bank, random local CU, etc.)? Nobody really mentioned anything about this part so I just wanted to throw it out there one last time. I am a bonehead about any of this type of stuff.

Any banks should be fine. You can stick with the national ones if it makes you feel better like Chase, Wells Fargo, BoA, etc...

 

[ZCP]

Who will you need to borrow from later? Start the relationship with a deposit.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[naesm]

Man this is my story only I am a little farther along the process (unfortunately on the losing side). Starting in 2013 I began to have a fair amount of success in IM. I made about 100k rather quickly, then in 2014 I scaled that into about 600k in revenue. So at the end of 2014 I was left with about 300k net sitting in bank accounts. So what did I say to myself "Wow, I have all this money I better start investing it and I also don't really want to push affiliate marketing offers anymore".

I consider myself to be fairly well educated, financially savvy, and good with money, but I had never experienced the hard knocks education of actually having a significant amount of money and how to manage it (these are 2 completely different things than the theory of having a lot of money). Fast forward to today, through various "investments" and ventures with bad internet marketing partners I have lost about 100k of it. Now I am trying to regroup, figure out what the hell is my next step and how to move forward with a good positive attitude.

The best advice that I can offer to anyone that has come into a substantial amount of money is slow down, take your time, and realize that you don't "have to" do anything right now. You have time and the fear of not maximizing gains will ensure losses.

A fool and his money are soon parted. I was definitely a fool. I trusted too much, was in a hurry and my ego and arrogance had severe consequences. But I can also say through these losses I was given a gift, a real world education in business that is invaluable that I have no doubt I will take with me into my next ventures.

And to answer your question, I would diversify your money across multiple accounts well below the FDIC limits. Not that that really matters as the FDIC is toothless and mostly insolvent today if and when banks do become insolvent they probably won't be able to pay the claims anyway.

You can also research the best capitalized banks in the US (these would not include most of your big box banks that are known names). Credit Unions tend to be a great choice as they tend to be better capitalized and not as highly leveraged.

Good luck to you. You seem like a smart thoughtful guy just be careful with your money. You have worked hard for it but realize that this is a gift for your life but can also be a curse or turn into a nightmare. Stay humble

 

[Jon L]

Banks have an automated way of handling this. Its called a CDARS account. If you have a lot of money, you can deposit it into a CDARS account, and the bank you deposit it into will spread that money across a number of different banks. That way, the entire amount of your money is FDIC insured.

Don't expect great returns on it, though.

http://www.cdars.com/

Nice problem to have!