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Old 09-10-2019, 04:11 PM   #21
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Just for what its worth.
For those unaware certain Money Market Funds w/some custodians are not FDIC insured to 250k either.

The (moneymarketfunds) are considered "investments".
Just sayin.......
https://www.statefarm.com/simple-ins...y-market-funds

little things matter.........bank accounts are usually called money market (deposit) accounts and have the FDIC insurance. Money market (mutual) funds are the animal you're talking about and are not insured. To make things more confusing, the words in parentheses are usually not used so the names are more similar (but still different).
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Old 09-10-2019, 04:22 PM   #22
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Originally Posted by kaneohe View Post
https://www.statefarm.com/simple-ins...y-market-funds

little things matter.........bank accounts are usually called money market (deposit) accounts and have the FDIC insurance. Money market (mutual) funds are the animal you're talking about and are not insured. To make things more confusing, the words in parentheses are usually not used so the names are more similar (but still different).
Correct. This is why you should always read the fine print.

FWIW, if you are over the limits or fear being so in a deposit account, you can get what amounts to the same credit profile by buying T bills or a US Treasury money market fund. Full faith and credit is full faith and credit.
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Old 09-10-2019, 04:38 PM   #23
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You can increase FDIC (or NCUA) insurance by adding beneficiaries - up to 5 per "category" (ie: each single account owner, or joint account). So it's theoretically possible to insure for up to $1.25M each individual owner (5 beneficiaries listed - even if one of them only gets 1% or $1) and $1.5M joint.

More info..https://www.depositaccounts.com/blog...ficiaries.html. You can also play around with the FDIC or NCUA coverage calculators to confirm different setups.
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Old 09-10-2019, 04:56 PM   #24
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................................... You can also play around with the FDIC or NCUA coverage calculators to confirm different setups.
Have you tried using the calculator for POD acct w/ 2 owners, 1 beneficiary.

For both calculators if I input 750K value, I find 250K uninsured. Not surprising in a ways since both calculators look like 1 was copied from the other. Is this correct or an error?
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Old 09-10-2019, 05:09 PM   #25
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Have you tried using the calculator for POD acct w/ 2 owners, 1 beneficiary.

For both calculators if I input 750K value, I find 250K uninsured. Not surprising in a ways since both calculators look like 1 was copied from the other. Is this correct or an error?
If I remember right, that's expected - you lose one of the owners when there's a beneficiary. So, 2 owners with 1 beneficiary s/be $500K. Try adding a 2nd bene and you should get to $750K.
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Old 09-10-2019, 05:11 PM   #26
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Or even better..

Husband, POD wife w/1 beneficiary - $500K.

Wife, POD husband w/1 different beneficiary - $500K.

Husband and wife, JTWROS - $500K

Total: $1.5M. And that's before you start to add additional benes or get creative with different account types (taxable v. IRA v. trust) and other creative tricks.

ETA - don't have time to check at the moment so please don't take that you have to have different benes listed in the above scenario to get to $1M on the individually titled accounts..if someone has time plz run the calculator and check if they need to be different benes or can be the same..
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Old 09-10-2019, 07:32 PM   #27
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If I remember right, that's expected - you lose one of the owners when there's a beneficiary. So, 2 owners with 1 beneficiary s/be $500K. Try adding a 2nd bene and you should get to $750K.
That's a novel explanation for the one beneficiary case. Problem is if I have 2 beneficiaries the NCUA says 1M.
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Old 09-11-2019, 04:03 AM   #28
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I spoke with the branch manager of my CU to set up a CD ladder in our joint account. We have $1m to divide equally into 4 CDs and was told it they would be insured if a CD was in each of our names and the other 2 CDs would be in a trust for each of the 2 children. Is that the same as beneficiaries? Is there a downside?



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Old 09-11-2019, 04:25 AM   #29
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There’s also the CDARS program.
https://www.cdars.com/home/how-cdars-works
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Old 09-11-2019, 06:36 AM   #30
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I spoke with the branch manager of my CU to set up a CD ladder in our joint account. We have $1m to divide equally into 4 CDs and was told it they would be insured if a CD was in each of our names and the other 2 CDs would be in a trust for each of the 2 children. Is that the same as beneficiaries? ................................



Cheers!
I believe so. If you use the edie calculator, when you pick the account type,
one option is POD/ITF..........payable on death/in trust for........and then you are asked to pick beneficiaries. More specifically (check w/ the manager):
you may want to have
1)POD: owner H/beneficiary W 250K
2)POD: owner W/beneficiary H 250K
3) POD: owners H/W; beneficiaries C1/C2
that way transfers are automatic w/o probate.
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