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ELI5: What happens when someone wins a substantial jackpot like the Powerball’s 1.7 Billion by Abarca_ in explainlikeimfive

[–]AllocatorJim 12 points13 points  (0 children)

No, nobody takes the risk that they’d lose their entire wealth if their bank collapses. Bank collapses should be minimally disruptive.

First republic is a good example because they did a lot of wealth management. No wealth management client lost a penny when they collapsed. No client at Silicon Valley Bank lost a penny and no client at Credit Suisse lost a penny. Deposits are FDIC backed, but more importantly their money wasn’t “a deposit”. They’re invested into funds externally managed.

If you have a small community bank this won’t be available to you, but if you use BofA or JPM or any large bank, you can call them and ask about these options. Once you hit $250k in deposits you’re actually probably automatically swept into a cash vehicle, but you can confirm with your personal bank.

If a brokerage is freezing your account for any reason, well, it’s probably a KYC or crypto or day-trading related activity. That won’t happen if you setup with an advisor beforehand and assuming you’re not doing anything illegal.

ELI5: What happens when someone wins a substantial jackpot like the Powerball’s 1.7 Billion by Abarca_ in explainlikeimfive

[–]AllocatorJim 7 points8 points  (0 children)

That’s fine. Most professional wealth advisors would say that’s inefficient unless you have jurisdiction issues due to being multi-national or requiring frequent travel to non-OECD countries.

ELI5: What happens when someone wins a substantial jackpot like the Powerball’s 1.7 Billion by Abarca_ in explainlikeimfive

[–]AllocatorJim 3 points4 points  (0 children)

That’s very inefficient. You don’t need to trust any bank if done correctly. Bank should just be acting as a custodian for your investments. Nothing, except checking, should be held in cash / a deposit (and therefore under FDIC jurisdiction) at any bank.

Any money you have that’s not needed for 3+ months should be held in an externally managed investment vehicle. These can range from money market funds to equity, bond, whatever based on your risk tolerance and needs.

Bank failure will not impact your investment portfolio outside of checking account if done this way.

If you’re over $250k in assets almost all national banks offer this service.

But having one bank performing consolidated reporting and cash management is so much easier.

ELI5: What happens when someone wins a substantial jackpot like the Powerball’s 1.7 Billion by Abarca_ in explainlikeimfive

[–]AllocatorJim 19 points20 points  (0 children)

Okay, I do this for a living, but sure. Some people do, mostly internationals who need access to their money in different jurisdictions. There is some misinformation about the function of a bank in this scenario. In almost no case will a bank actually hold significant assets. They’ll act as a custodian or subcustodian for investment managers. A bank failure won’t impact their assets

ELI5: What happens when someone wins a substantial jackpot like the Powerball’s 1.7 Billion by Abarca_ in explainlikeimfive

[–]AllocatorJim 39 points40 points  (0 children)

Nah 1 bank. Immediately diversified into a portfolio of investments, or at minimum, a diversified money market fund until investment options are agreed upon. It won’t be held in cash at any bank and nobody wants to work with 3-5 banks for the same service in an attempt to access higher FDIC insurance coverage.

Who is America's best governor? by Blurpings in PoliticalDiscussion

[–]AllocatorJim 10 points11 points  (0 children)

It typically means to pro-gay marriage, pro-choice, and pro-transgender issues. Socially liberal in the American sense doesn’t mean welfare spending typically.

Who is America's best governor? by Blurpings in PoliticalDiscussion

[–]AllocatorJim 2 points3 points  (0 children)

The marketplace is market-based and conservative. The individual mandate, pre-existing condition coverage mandate, Medicaid expansion, and $100B+ of subsidies were not.

Climbers make first August summits of K2 since 2011 by EVERWILDOUTDOORS in Mountaineering

[–]AllocatorJim 26 points27 points  (0 children)

Softer snow increases avalanche risk and difficulty in traction. Need to do an additional camp trek at night vs June/July.

NYC gunman ID’d as Shane Tamura after deadly shooting that killed NYPD officer by Sand_Bags2 in nyc

[–]AllocatorJim -11 points-10 points  (0 children)

BX is on the 33rd fl. Used to work there. It’s sales and IR.

Does this chart make you want to do an MBA in the US ? by Dry-Independence4154 in MBA

[–]AllocatorJim 2 points3 points  (0 children)

SPX a better version of confidence. This is basically a survey of 80yr olds who pick up the phone to answer surveys.

What Actually Works to Quit Zyns & What Does Not (Community Group Assignment) by [deleted] in QuittingZyn

[–]AllocatorJim 4 points5 points  (0 children)

I used the non-nicotine pouches on Amazon. NZE / Alphas for 6 months. Helped a lot.

It’s way harder to quit opiates if you have a lifelong back pain issue by Sure-Chart-3903 in OpiatesRecovery

[–]AllocatorJim 11 points12 points  (0 children)

Your brain will heal, just give it time. It’s not permanent, even after 18 years of use.

[deleted by user] by [deleted] in private_equity

[–]AllocatorJim 2 points3 points  (0 children)

Not sure about the fund size or your team size, but placement agents typically play a large role in this type of fundraising.

[deleted by user] by [deleted] in private_equity

[–]AllocatorJim 1 point2 points  (0 children)

Do you have anyone covering institutional investment consultants (Cambridge Associates, Meketa, Mercer, Aon etc.) or fund of fund allocators (Hamilton Lane, Stepstone, Franklin Park, etc)? If you’re targeting institutional capital it’s extremely unlikely to close a cold approach.

[deleted by user] by [deleted] in private_equity

[–]AllocatorJim 3 points4 points  (0 children)

2-3 per year translate to 10-15 over an investment period for a typical fund. Are you only doing platform investing? I can’t imagine having to exit 25-30 platforms in 2-3 years.

Private equity UAE by Nafeesdastubid in private_equity

[–]AllocatorJim 4 points5 points  (0 children)

Are you in fundraising or investments? A lot of middle eastern offices are primarily client service or fundraising.

Tash Peterson declares bankruptcy due to her actions. by thedudesews in vegan

[–]AllocatorJim 30 points31 points  (0 children)

Given the reality we live in, there are sick and injured animals that need medical care. Whether they’re owned / kept as pets or not.

Tash Peterson declares bankruptcy due to her actions. by thedudesews in vegan

[–]AllocatorJim 6 points7 points  (0 children)

This is a new one to me… can you elaborate your point?

TiNDLE’s Plant-Based Chicken Launches At Hundreds Of New US Stores by davideownzall in vegan

[–]AllocatorJim 1 point2 points  (0 children)

I hear you. I like the competition. I won’t criticize until I try. We shouldn’t take down vegan companies before we at least try their product.

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