The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  https://boards.fool.com/when-i-was-at-exxon-in-the-early-198039s-there-34830673.aspx

Subject:  Re: Hocomania still active Date:  5/12/2021  5:49 AM
Author:  CuriousQ Number:  102723 of 103821

When I was at Exxon in the early 1980's there were guys taking $100,000 loans from their 401k to purchase brokered CDs with 17% yields. Some of those banks went under, but as long as you FDIC insurance, all you lost was a few months interest.

One manager just below the VP level put over $500,000 in a Houston bank (FDIC protection at the time was limited to $100,000. He lost a good piece of it.)



IIRC, the FDIC insurance was "per entity" or some such wording. So, you could get insured to the max in one account of John Smith, another of J.W. Smith and still another of Mr. and Mrs. John W. Smith. So, it took a small bit of care to make sure large amounts were insured, but you could do it.
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us