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Wikileaks 3/7/2017 Dump Confirms Deposit Spreading Decision

Kaight
  |     |   1,192 posts since 2011

Today's Wikileaks dump, speaking in general, give pause to a rate chaser like me. Let's look at the available options:

***Cease rate chasing, use local institutions only, and eschew all net access, marking accounts for in-person activity only

This seems draconian in 2017, and ability to cut off net access might not even be possible.

***Ignore the entire matter and hope for the best going forward. This is the "Don't worry, be happy" strategy.

In the overwhelming number of instances this strategy has worked up until now. If past is prologue this approach should continue to remain safe a while longer. This strategy WILL work until it stops working.

***Minimize risk by deposit spreading, while obtaining paper documentation at least monthly.

I have been transitioning to this strategy for the last (roughly) six months. After today's bombshell, I realize it might be prudent to speed up the transition.

Deposit spreading means use of beneficiary designation to increase NCUA or FDIC insurance is cast aside. Instead, conscious effort is expended to spread funds, as necessary, among a larger number of financial institutions. Will this mean lower aggregate interest income? It probably will, although your loss will depend on the overall size of your savings nest egg.

Why do this? The hope is spreading funds more widely, with lower concentration of funds at any single financial institution, will enhance security overall should some sort of (internet-related or other) black swan event eventuate.

After reading the full write up for today's Wikileaks "Vault 7" release, I would prefer my savings not be exposed in any way to the vicissitudes of the internet.  But I just do not, as a practical matter, think that approach is viable. So the best plan I can conjure right now is to avoid placement of all my eggs in one basket, or in only a small number of baskets, even though that likely would mean higher interest income.

Finally, today's release makes clear need, on at least a monthly basis, to maintain paper copies of account data.  With e-statements and ready availability of account data on the net, there is an unfortunate tendency not to maintain a paper account record vigorously.  Any such laxity in paper record maintenance must be tightened up pronto!

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Bozo
  |     |   1,375 posts since 2011
Having a "paper trail" of one's accounts is invaluable. The cost of paper statements (if any) is minimal. At Alliant, for example, it's $1/month. Last I checked, all my other paper statements were free. When I log on to an account, and the "go paperless" box pops up, I click "no thanks".

That said, folks might be wary of mail-box theft. We had a rash of thievery in our locale. As a result, we changed all our financial mailing to a secure Post Office Box in our city.
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hank
  |     |   110 posts since 2016
how often do you go to the po box and is it a big time waster? I've thought of doing that also
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Bozo
  |     |   1,375 posts since 2011
Hank, we pick up our mail at the local post office roughly once/week. Not a huge issue. What was (and continues to be) a huge issue is the fact some fool broke into our mail box across the street. Identity theft is a pain.

All our "sensitive" mail (with financial info) is now directed to our PO Box. We are lucky to have a post office nearby.

The box costs a few bucks per year, but the peace-of-mind is priceless.
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Kaight
  |     |   1,192 posts since 2011
Bozo, just saw your post. Interesting. I have been doing the "PO box for financial mail" thing since the early 1990's. My mailbox at home had not been pilfered prior, and it has not been robbed since. Regardless, doing the PO box thing simply seemed to me back then the prudent course. And through all the intervening years I have not changed my mind. My PO box, while not too distant from my home, is nevertheless in another state; so much the better IMO.

Only negative: Since I began renting my PO box, the yearly cost has skyrocketed! So what else is new.

While my thread here is about deposit spreading, the larger theme is security. I believe having a PO box for financial mail is an important component of one's overall security plan. I'm happy you mentioned it.
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