She called the bank to see about, hypothetically, pulling out cash, rather than, say, a cashiers' check. The maximum that can be taken out at one time is $30,000, from this particular institution. There are only so many hundred dollar bills in the house, and they
Just an interesting tidbit for consideration.
UPDATE: Yes, indeed my name goes on a list because I could be laundering drug money. The VP at the bank told my wife not worry because there is no way such a confiscation of accounts could happen here. After all we are insured by the FDIC -- backed by the full faith and credit of the federal government. The bank is sound as a dollar. You don't want to keep money in your house. What if it burned down? You could be robbed.
The fact that she was so quickly booted up to the VP -- I've met him, he's a good guy -- indicates that she is probably not the only inquirer they have spoken to the last couple of days. (Interestingly, the VP suggested putting her cash in a safe deposit box. I am not sure, but I think I have heard that is illegal.)
It can happen here. It has happened here. It almost certainly will happen here at some point. All it takes is for a desperate government to levy a "tax" on existing bank accounts. John Roberts said last summer that any kind of tax is "constitutional" if Congress passed it. And, of course, it will be limited to the "rich", so those living off the government teat will not be adversely impacted. There will probably also be waivers and exemptions for teachers and other public sector union members.
This may be no big deal, but it may be a crack in the public trust. The worst thing that can happen is for people in general to perceive that the house is rigging the game -- not just working the odds, but blatantly and brazenly strong-arming. It is as if, even when your bet pays off and you start to walk away from the table, the house's muscle comes over and demands a portion of your winnings. At that point, the players understand, and it stops being a game at all.
Alternatives?
ReplyDeleteInteresting indeed. Wife just came back from town where she did a cash to silver conversion but she left the coins on the car roof, took a sharp turn and, well, lost another few ounces. She really needs to be more careful.
ReplyDeleteI'm keeping an eye out for more IRA/401K "re-investment" talk. I'm this (holds fingers close together) close to cashing in and taking the hit. This (holds fingers close together) close I'm tellin ya.
It's a tough call. The boss, i.e., my wife, is probably going to start pulling smaller amounts of cash at regular intervals to keep on hand. We will also shift some money to less vulnerable (theoretically) investments. Life insurance and annuities would probably be farther down the list of accounts to be confiscated and thus safer, so long as the insurers are solvent.
ReplyDeleteWe actually have a fairly substantial cash reserve in the safe. So we would be functional for six months to a year with just what we have on hand. We'll add to that and convert more of the cash, as we pull it out payday-by-payday, into metal and barter items -- e.g., tools and supplies of various kinds, weapons -- mainly stuff that we use ourselves or something that stores well.
I quit drinking almost thirty years ago, but I might buy some hard liquor in half-pint or pint bottles because it's easy to set a valuation on and trade, and it stores indefinitely. That's a pretty minor move, but think about stocking a general store or hardware store. Cloth, wire, detergent, bleach, paper towels, toilet paper, pencils, notebooks, cordage, chain, etc. -- again, all minor stuff but certain to be useful in a crisis.
I missed your comment earlier, John. Even a few ounces makes me want to cry. It's so pretty. Somebody else may have gotten blessed.
ReplyDeleteI have an old IRA from my job down in Texas that has been laying around for years. I think I can avoid the penalty on converting that to an annuity, though the payouts will be taxable when I start to receive them. Check around but I think you can avoid the 10% hit with an annuity as well.
I don't like annuities, and I certainly wouldn't stick too much in one, but as a tool for diversifying they might be worth considering.
Sorry Mush. I didn't mean to evoke your sympathy although I appreciate your kind words. It was just a variation on the boating accident and losing guns and gold overboard joke. I should have added a /lying tag.
ReplyDeleteOK, I read too fast.
ReplyDelete