So why is your money sitting there in the bank or in a brokerage account uninsured?
I know you are going to tell me about FDIC and SIPC. But those are hardly legitimate insurance. FDIC will be exposed as a scam if large numbers of banks ever go under. These September 1, 2014 numbers tell the truth of the danger: $41 billion in reserve available payout funds, $6 trillion in deposits. The math is ugly. For every one hundred dollars in FDIC-insured accounts, the FDIC has LESS THAN SEVENTY CENTS to pay you back with.
OK, so let’s think about it. You have $10,000 in the bank, and if the system implodes which is entirely possible and numerous large banks go under, your 10,000 simoleans are “insured” for less that $70! Ouch. And you leave your money in the bank to earn .1% interest?
The SIPC coverage for a brokerage account is extremely limited, backed by low percentages also, and it only covers losses due to theft or proven unauthorized trading. Losses due to fraud are not covered.
Real “money insurance” involves……you guessed it……owning some real money!
I will tell you all about getting “real assets” like gold, silver and platinum into your portfolio in an upcoming post!