Is it time to stash the cash?
Current economic instability and continued news of failing financial institutions has many of us concerned about the future. Uncertainty about market reaction and the overall strength of various financial sectors can lead to decisions that may or may not be justified. How do you decide what is right for you, and does it come down to a Bank versus Home Safe scenario?
Our advice is two fold.
First, in order for our economy to begin to turn around, we need to be comfortable with our Banks ability to store our savings in a way that is not only Physically secure, but also Financially secure. Rarely do we question the physical security at our Nations banks; however we have been fielding an ever increasing number of questions based around the Financial Security of the banking industry. Simply put, folks are asking us if they should pull their money out of their bank, and store it in a home safe or burglary rated safe in their home.
Recently, the FDIC raised their account protection from $100,000.00 to $250,000.00. This means that the first $250,000.00 you have in the bank is Federally Secured by the United States Government. For the majority of us, this should calm any concerns of Financial Security, as most accounts are below this threshold.
First piece of advice: Do not pull all of your money out of your bank! Rely on the protections provided by the FDIC Insurance, and actively question your bank on both their investments and their plan for the future.
The team at KL Security takes these types of questions very seriously, and while we do not advise that you withdraw all of your money from your bank, we do advise a balanced approach to personal financial security. Just as we would never advise that you backup all of your computer data through just one method, like tape backup, fireproof servers, or off-site storage, we also do not advise storing your savings in just one location.
A home safe or burglary rated safe is a great way to store emergency savings. If your situation allows, we advise keeping enough cash to carry you through 1-3 months of uncertain times. Choosing the right safe for this job is an important one, and careful consideration should be given when deciding the right type of safe for your specific use.
Call us today to learn about some options you may want to consider!