How do lottery winners or extremely wealthy keep their $ safe?

FDIC max is $100k. The amount of cash you are talking about would be invested, not deposited in savings. Investments are not insured.

To keep deposits of mroe than 100K insured, use multiple banks or accounts under multiple names (wife, business, etc)

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FDIC max is $100k.

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$250,000

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So how can someone safely put their money away and not worry about losing it?

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For amounts that size there is always some risk of loss. But there are ways and it's a question most third-world rich families have dealt with reasonably well.

You stash funds in investments all over the world, for one thing. If you have a billion to spread around, you could put ten million each in the most solid bank in 100 different countries. Sure, you may lose ten million here or there but most of your money will be fine.

Also, you can invest in real estate in many different countries and rent it out when you aren't there. Or just move there, Saudi royals and Russian oligarchs do that a lot. Or buy one or two of those superyachts - they aren't just for being over-the-top, they are also reasonably safe ways to store value.

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What would you do, Russian?

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First of all, I'd manage most of the portfolio myself in stocks and mutual funds.

For cash requirements or for funds I would want to have no volatility of values, I'd set up accounts at several banks and max out the FDIC coverage by opening an account in my name, my wife's name and a joint account in both of our names thus providing $750,000 FDIC coverage ($250,000 X 3) at each bank.

Then I would pick a large bank and set up a revocable trust and have the bank's trust department manage a good chunk of the money in fixed income and equities. No insurance is needed for that and I would always have that in case I screw up managing my own equities portfolio.

If I had millions left over after that, I'd pick a "too big to fail" bank and set up a collateralized deposit account whereby the bank would pledge government securities against any balances I maintained with them in excess of FDIC coverage. This is what large corporations and governmental agencies routinely do to protect their deposits over the FDIC coverage. While it's not like having FDIC, I would at least be a secured creditor of the bank in the unlikely event the government let that bank fail.

ETA: I'd probably also rent a large safe deposit box and fill it up with $100 bills, although technically I think that's illegal from what I understand.

First, it is impossible to eliminate the risk of loss. You can only minimize it.

Another technique is to analyze your realistic cash flow requirements and needs for liquidity. Establish as many insured accounts as your family will qualify for. If you come up short you can establish a line of credit with the bank to cover your requirements. The line of credit can be secured with assets held outside the bank in order to minimize the costs.

I would do pretty much everything Russian said except that I would own a bank. I would assrape people with a ridiculous spread.

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FDIC max is $100k.


$250,000

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Didnt know they raised it a few years back - good to know, not that it matter for me though lol

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I have managed money for about 5 clients who got settlements over 1 million dollars. None of them have money left.

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You may want to rephrase that , did you manage it and burn through it? God I hope not.

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I have managed money for about 5 clients who got settlements over 1 million dollars

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hmm I've been looking for a financial planner.

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None of them have money left

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umm nevermind

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You may want to rephrase that , did you manage it and burn through it? God I hope not.

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They burned through it faster than I could make it for them. I manage the money, not their lives and shitty decision making. I tell them it's a bad idea and they still want $100,000 for the duck lease.