Quote:
Originally Posted by Porsche-O-Phile
How on earth does a person:
(1) amass $2M and
(2) not have enough sense to spread it between different investment vehicles and/or banks?
I swear, it's mind-blowing to me. Nothing against your relatives, but I can't fathom how people can value such astonishing amounts of money so little as to be so utterly foolish about where to put it. If I ever had 1/10 that amount, I'd have a professional financial planner advising me. No joke.
I don't mean to sound callous - hopefully they're able to preserve a lot of their savings. It's got to be a nightmare seeing one's nest egg evaporate (potentially) like that when one is older. . . Absolute nightmare scenario.
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There's nothing foolish about it. It is all FDIC insured. They will get every penny out, they'll go to the bank on Monday (or Tuesday to avoid the crowd) and the FDIC will cut them a check for the full amount.
They've BTDT.
Their money is spread out among many investment vehicles (real estate, many banks). It's not their nest egg.
The only money they have lost, or not done well with, has been at the hand of "professional financial planners." They have found that when you put responsibility for your money in the hands of others, you don't do as well. I can't argue with their success - they are actually only high school educated, blue collar people with a lot of common sense (they are straight out of Millionaire Next Door).