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Reply to: Preparing for CLO induced bank failures? Posted June 14, 2020

My thoughts – and what we’ve largely done: 1) Get debt-free, or as debt-free as you can. Being debt-free is one way to reduce your reliance on the financial systems. 2) Have accounts at at least 2 different institutions. We bank at a traditional large bank as well as at a credit union. This allows for the ability to pull out a different debit card if one doesn’t work, to have access to funds when travelling (why I like having an account at a large multi-national bank), and allows you to have access to some funds even if the other institution falters. 3) Cash. Have cash at home in various denominations – yeah a lot of places are getting away from cash, but ultimately, if the power/internet is out most stores will still happily accept cash for transactions, leaving those with only a card out of luck. How much cash is up to you and your comfort level. 4) Stock up on items you use anyway but could also be useful for barter – ammo, alcohol, etc. Personally, I would look at diversifying how you access your money – electronic/online, card, cash, etc. Yes the financial systems are at risk, but what I’ve found too, with COVID-19 and branches closing or limited hours, accessing large amounts of cash was harder (more than I could get out of the ATM easily). For this same reason I’d, personally, stay away from foreign funds simply due to the logistics of conversion – in addition, international banks didn’t fare any better than U.S. banks during the last crisis. (Side Note: I work in banking and have, in various capacities, for the last 13 years)

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Reply to: Preparing for CLO induced bank failures? Posted June 14, 2020

My thoughts – and what we’ve largely done: 1) Get debt-free, or as debt-free as you can. Being debt-free is one way to reduce your reliance on the financial systems. 2) Have accounts at at least 2 different institutions. We bank at a traditional large bank as well as at a credit union. This allows for the ability to pull out a different debit card if one doesn’t work, to have access to funds when travelling (why I like having an account at a large multi-national bank), and allows you to have access to some funds even if the other institution falters. 3) Cash. Have cash at home in various denominations – yeah a lot of places are getting away from cash, but ultimately, if the power/internet is out most stores will still happily accept cash for transactions, leaving those with only a card out of luck. How much cash is up to you and your comfort level. 4) Stock up on items you use anyway but could also be useful for barter – ammo, alcohol, etc. Personally, I would look at diversifying how you access your money – electronic/online, card, cash, etc. Yes the financial systems are at risk, but what I’ve found too, with COVID-19 and branches closing or limited hours, accessing large amounts of cash was harder (more than I could get out of the ATM easily). For this same reason I’d, personally, stay away from foreign funds simply due to the logistics of conversion – in addition, international banks didn’t fare any better than U.S. banks during the last crisis. (Side Note: I work in banking and have, in various capacities, for the last 13 years)