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Recently, I received an inheritance of $1.2 million. I'm planning on investing 1/4 of that in properties. With that being said, I'm still way above the FDIC coverage. Besides investing, what else could I do to protect my money? Should I just open multiple accounts in other banks to spread out my money? thanks

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    How many years until you plan on retiring? What's your tolerance for risk? For example, would you accept a 20% decline in a year if the average return was 8%, or perhaps you are not willing to accept any decline at all, and so will settle for 1% return?
    – ChrisInEdmonton
    Commented May 9, 2016 at 23:01

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If you are concerned about FDIC coverage, then yes, you can spread your money across multiple banks. The limit is $250k, so after you invest in property, 4 banks should do it.

That having been said, in my opinion, it would be a waste to keep all this money in a bank's savings account. You will slowly lose value over time due to inflation. I suggest you spend a little money on an independent fee-based investment advisor. Choose someone who will teach you about investing in mutual funds, so you can feel comfortable with it. He or she should take into account your tolerance for risk, look at your goals, and help you come up with a low cost plan for investing your money.

It's certainly okay to keep the money in a bank short-term, but don't wait too long; take steps toward putting that money to work for you.

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    If you're going to put it in a bank for the guarantee, at least look at overlapping.rolling CDs of varying lengths rather than simple savings account.
    – keshlam
    Commented May 9, 2016 at 23:16
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Be very careful to hold on tight to your money! I agree with paying for an investment advisor, but I would say use at least two to get different viewpoints, and get credentials and references! Don't let relatives convince you to invest in their business, or help them out, or any other such nonsense. Real estate still is one of the best investments out there in my opinion. You could buy a fixer upper and rent it out?

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  • I think that's an answer to a slightly different question, or two slightly different questions, that we have addressed elsewhere... Important point here is that if one wants FDIC insurance for large amounts, one has to divide it between banks, and should make sure it's in the highest-return guaranteed vehicle the banks can offer you so it's not losing to inflation.
    – keshlam
    Commented May 16, 2016 at 18:36
  • How does this answer the question?
    – JTP - Apologise to Monica ♦
    Commented Oct 23, 2017 at 21:36

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