HAVING THAT SAID IS CNBC PERSONAL FINANCE CORRESPONDENT
PERSONAL FINANCE CORRESPONDENT SHARON EPPERSON.
SHARON EPPERSON. >> THANK YOU.
>> THANK YOU. >> DEBRA ASKED IS OUR MONEY SAFE
>> DEBRA ASKED IS OUR MONEY SAFE IN THE BANK RIGHT NOW?
IN THE BANK RIGHT NOW? ARE THE BIG BANKS SAFER THAN THE
ARE THE BIG BANKS SAFER THAN THE SMALLER BANKS?
SMALLER BANKS? HOW WOULD YOU RESPOND TO DEBRA?
HOW WOULD YOU RESPOND TO DEBRA? >> THE FIRST IS YOU HAVE TO MAKE
>> THE FIRST IS YOU HAVE TO MAKE SURE IT’S IN AN FDIC INSURED
SURE IT’S IN AN FDIC INSURED BANK.
BANK. IT’S THE CORPORATION THAT’S
IT’S THE CORPORATION THAT’S GOING TO KEEP YOUR MONEY SAFE.
GOING TO KEEP YOUR MONEY SAFE. YOUR SAVINGS ACCOUNT, CHECKING
YOUR SAVINGS ACCOUNT, CHECKING ACCOUNT, MONEY MARKET DEPOSIT
ACCOUNT, MONEY MARKET DEPOSIT ACCOUNT AND YOUR CDs.
ACCOUNT AND YOUR CDs. YES, BIG BANKS HAVE THIS FDIC
YES, BIG BANKS HAVE THIS FDIC INSURANCE FOR THESE ACCOUNTS BUT
INSURANCE FOR THESE ACCOUNTS BUT SOME SMALLER BANKS DO AS WELL.
SOME SMALLER BANKS DO AS WELL. YOU NEED TO GO TO FDIC.GOV.
YOU NEED TO GO TO FDIC.GOV. GO TO THE BANK FIND AND LOOK TO
GO TO THE BANK FIND AND LOOK TO SEE WHETHER OR NOT YOUR BANK HAS
SEE WHETHER OR NOT YOUR BANK HAS THE FDIC INSURANCE TO ENSURE
THE FDIC INSURANCE TO ENSURE YOUR MONEY IS SAFE.
YOUR MONEY IS SAFE. UP TO $250,000 PER DEPOSIT
UP TO $250,000 PER DEPOSIT ACCOUNT IS THE AMOUNT INSURED.
ACCOUNT IS THE AMOUNT INSURED. YOU WANT TO MAKE SURE YOU HAVE
YOU WANT TO MAKE SURE YOU HAVE THAT TYPE OF INSURANCE ON YOUR
THAT TYPE OF INSURANCE ON YOUR MONEY TO MAKE SURE THAT YOUR
MONEY TO MAKE SURE THAT YOUR MONEY IS SAFE.
MONEY IS SAFE. >> RON, REAL QUICK RESPONSE.
>> RON, REAL QUICK RESPONSE. THE BANKS HAVE BEEN GOING
THE BANKS HAVE BEEN GOING THROUGH VARIOUS FORMS OF STRESS
THROUGH VARIOUS FORMS OF STRESS TESTING TO MAKE SURE THEY CAN
TESTING TO MAKE SURE THEY CAN WITHSTAND SOME FINANCIAL CRISIS.
WITHSTAND SOME FINANCIAL CRISIS. I KNOW THE RULES HAVE CHANGED
I KNOW THE RULES HAVE CHANGED BUT SHOULDN’T THE BANKS BE ABLE
BUT SHOULDN’T THE BANKS BE ABLE TO HANDLE THIS BASED ON THE FACT
TO HANDLE THIS BASED ON THE FACT THEY WERE SUPPOSED TO GO THROUGH
THEY WERE SUPPOSED TO GO THROUGH THE TESTS.
THE TESTS. >> THEY ARE BETTER CAP TILED
>> THEY ARE BETTER CAP TILED THAN GOING INTO THE CRISIS OF
THAN GOING INTO THE CRISIS OF 2008.
2008. THEY HAVE LIQUIDITY RELATIVE TO
THEY HAVE LIQUIDITY RELATIVE TO NORMAL CIRCUMSTANCES.
NORMAL CIRCUMSTANCES. THE QUESTION QUESTION IS WHETHER
THE QUESTION QUESTION IS WHETHER OR NOT AND IT’S NOT LIKE 2008
OR NOT AND IT’S NOT LIKE 2008 WHERE THE BANKS ARE THE LOCUST
WHERE THE BANKS ARE THE LOCUST OF THIS CRISIS.
OF THIS CRISIS. WE HAVE A HEALTH CARRY AND
WE HAVE A HEALTH CARRY AND GLOBAL ECONOMIC CRISIS WEIGHING
GLOBAL ECONOMIC CRISIS WEIGHING ON THE SYSTEMS.
ON THE SYSTEMS. THE FEDERAL RESERVE IS
THE FEDERAL RESERVE IS BACKSTOPPING THEM ENTIRELY TO
BACKSTOPPING THEM ENTIRELY TO MAKE SURE THEY HAVE ENOUGH
MAKE SURE THEY HAVE ENOUGH LIQUIDITY TO MEET ANY DEMANDS
LIQUIDITY TO MEET ANY DEMANDS THAT MIGHT COME FROM CUSTOMERS
THAT MIGHT COME FROM CUSTOMERS AND TO EXTEND MORE LOANS TO
AND TO EXTEND MORE LOANS TO SMALL BUSINESSES ONCE THE
SMALL BUSINESSES ONCE THE PACKAGE FROM CONGRESS GETS
PACKAGE FROM CONGRESS GETS PASSED.
PASSED. THE BANKS, AS FAR AS WE KNOW ARE
THE BANKS, AS FAR AS WE KNOW ARE FINE.
FINE. THIS IS NOT 200.
THIS IS NOT 200. THIS IS A MUCH DIFFERENT TYPE OF
THIS IS A MUCH DIFFERENT TYPE OF CRISIS.
CRISIS. HEALTH CARE AND ECONOMIC CRISIS
HEALTH CARE AND ECONOMIC CRISIS LEADING THE FINANCIAL MARKETS.
LEADING THE FINANCIAL MARKETS. THE EXACT OPPOSITE OF WHAT WE
THE EXACT OPPOSITE OF WHAT WE SAW 12 YEARS AGO.
SAW 12 YEARS AGO. >> WE GOT A LOT OF QUESTIONS.
>> WE GOT A LOT OF QUESTIONS. THIS IS NOT A SUBSTITUTE FROM
THIS IS NOT A SUBSTITUTE FROM YOUR OWN FINANCIAL ADVISER.
YOUR OWN FINANCIAL ADVISER. MY DAD IS LOSING HIS LIFE
MY DAD IS LOSING HIS LIFE SAVINGS.
SAVINGS. HE HAY NOT LIVE THROUGH 2020 DUE
HE HAY NOT LIVE THROUGH 2020 DUE TO ILLNESS.
TO ILLNESS. SHOULD HE CASH OUT OR SHOULD THE
SHOULD HE CASH OUT OR SHOULD THE MONEY BE LEFT WHERE IT IS AND GO
MONEY BE LEFT WHERE IT IS AND GO TO HIS KIDS AND HOPEFULLY
TO HIS KIDS AND HOPEFULLY RECOVER FROM THIS FINANCIAL
RECOVER FROM THIS FINANCIAL DISASTER?
DISASTER? TOUGH QUESTION.
TOUGH QUESTION. >> IT’S A VERY TOUGH QUESTION
>> IT’S A VERY TOUGH QUESTION AND IT’S A QUESTION THAT REALLY
AND IT’S A QUESTION THAT REALLY HAS TO BE ANSWERED BY THE FATHER
HAS TO BE ANSWERED BY THE FATHER AND HIS FAMILY.
AND HIS FAMILY. THERE’S A COUPLE OF THINGS TO
THERE’S A COUPLE OF THINGS TO KEEP IN MIND.
KEEP IN MIND. FOR ANYONE THINKING ABOUT
FOR ANYONE THINKING ABOUT CASHING OUT, IT’S IMPORTANT TO
CASHING OUT, IT’S IMPORTANT TO GO BACK AND REEVALUATE WHAT YOUR
GO BACK AND REEVALUATE WHAT YOUR FINANCIAL OBLIGATIONS ARE.
FINANCIAL OBLIGATIONS ARE. IF YOU’RE ABLE, IN THIS CASE, IF
IF YOU’RE ABLE, IN THIS CASE, IF THE FATHER IS ABLE TO COVER
THE FATHER IS ABLE TO COVER MEDICAL EXPENSES, TO COVER
MEDICAL EXPENSES, TO COVER LIVING EXPENSES FOR TIME THAT HE
LIVING EXPENSES FOR TIME THAT HE HAS THEN THERE’S NO REASON TO
HAS THEN THERE’S NO REASON TO CASH OUT OF THE MARKET.
CASH OUT OF THE MARKET. EVERY FJINANCIAL ADVISER WILL
EVERY FJINANCIAL ADVISER WILL TELL YOU CASHING OUT IN A DOWN
TELL YOU CASHING OUT IN A DOWN MARK YOU’RE GOING TO LOCK IF
MARK YOU’RE GOING TO LOCK IF LOSSES.
LOSSES. IF IT’S IN A TAXABLE ACCOUNT AND
IF IT’S IN A TAXABLE ACCOUNT AND YOU HAVE SOME PROFITS IN THERE,
YOU HAVE SOME PROFITS IN THERE, YOU’LL GET A TAX HIT THERE.
YOU’LL GET A TAX HIT THERE. I THINK IT’S VERY IMPORTANT FOR
I THINK IT’S VERY IMPORTANT FOR INVESTORS TO CONSIDER WHY THEY
INVESTORS TO CONSIDER WHY THEY ARE CASHING OUT.
ARE CASHING OUT. DO THEY REALLY NEED THE FUNDS
DO THEY REALLY NEED THE FUNDS RIGHT NOW AND FOR THE FAMILY
RIGHT NOW AND FOR THE FAMILY THAT MAY WANT TO SEE IF THE
THAT MAY WANT TO SEE IF THE FATHER CAN PASS THIS ALONG, THIS
FATHER CAN PASS THIS ALONG, THIS IS WHERE STATE PLANNING COMES
IS WHERE STATE PLANNING COMES IN.
IN. THAT MIGHT BE A GREAT IDEA.
THAT MIGHT BE A GREAT IDEA. YOU NEED TO WORK WITH ESTATE
