What's With This ???????????

iVillage Member
Registered: 03-25-2003
What's With This ???????????
3
Sat, 09-27-2008 - 3:28pm

What's with all the banks going under?  I'm so upset that I can hardly handle it.  What's going to happen to all of our retirement years?  How are we going to survive?


Lottie, you're the financial expert on the board.  Can you shed a little light on the prospects?

 


 


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iVillage Member
Registered: 09-10-2008
Sun, 09-28-2008 - 9:43am

Not an expert, but here's what I know. Many small local banks like mine are doing fine. We put cash in accounts there, they used this on local projects and did not get in over their heads. The big ones that are in trouble lent way too much $$ on risky ventures.

Many of us pre and current retirees have investments in mutual funds. These are NOT guaranteed the same as funds in your local banks savings instruments by the FDIC. Many are part of the SIPC. The brokerage house which handles your mutual funds will display their logo proudly if the brokerage has participated in their program. References below.
http://www.sipc.org/
http://www.fdic.gov/

Of interest is that the government made an exception for mutual funds invested in Money Markets.

http://www.cnbc.com/id/26788110

Oops - just got call to head to a post wedding breakfast, so must go. Hope this at least gives you some answers.
Jacquie

Avatar for lottie77
iVillage Member
Registered: 03-25-2003
Sun, 09-28-2008 - 5:59pm

I don't consider myself and expert in anything financial except what

lottie77~~~

iVillage Member
Registered: 09-10-2008
Sun, 09-28-2008 - 6:42pm

Re: the $100K limit -

There are different rules if it is a JOINT account. This estimator lets you put in your funds in a single bank, then tells you what amount is insured. No personal or account numbers used and you can make up a bank name to keep it private.

http://www.fdic.gov/edie/calculator.html#03

Jacquie