We believe that saving money is the FOUNDATION of wealth. But where can you save where your money can keep pace with inflation AND be safe?
We all know that rates are at their rock bottom, but you may be blissfully unaware of all of the potential threats to your savings from theft, civil asset forfeiture, cyber-crimes, bank melt-downs and prying eyes.
We believe you would be wise to diversify savings as well as investments. We wrote this article to alert our clients to critical issues within the banking system:
“Bank Insecurity: 3 reasons banks aren’t as safe as you think.” https://premiertrustadvisors.com/bank-insecurity/
What about FDIC insurance protection of $250k?
As Ike Devji, an asset protection attorney states, “many professionals I deal with, including a former bank president in the Southwest, have described that limit as a placebo. They believe the FDIC would actually be insolvent in the event of a major run on the banks. If you remember correctly, the limit was increased to $250,000 only four years ago to prevent such a run.”
FDIC insurance may make us feel more secure, but it can only back up a small percentage of bank deposits before the house of cards would fall.
Then there’s the problem of crime, confiscation, creditors and lawsuits! It will probably never happen to you, but sometimes those who should be protecting us are the ones we need protection from.
So where CAN you save?
An excellent and little-known alternative is where BANKS are keeping much of THEIR cash… in high cash value life insurance.
Even banks are socking away many billions in life insurance – in increasing amounts every year since the Great Recession – while peddling certificates of deposit to their customers.
