Now is the time of year when many Canadians, and likely some Self-Sufficient YOU! members, head south for the winter and top up their U.S. 🇺🇸 dollar accounts which help to fund their time away from home in the ☀️.
Over the past year or so, we've likely all heard of or read about some of the troubles with and actions taken by some U.S. 🇺🇸 banks, which included failures and buy-outs and other troubling actions. More and more, I am hearing of stories from U.S. citizens who are receiving letters from their bank indicating that their account(s) have been closed and without a reason, that the bank is delaying or reducing their cash withdrawal amounts, or that their bank is changing for making cash deposits.
"In an alarming turn of events, major banks are leaving countless Americans in financial limbo by suddenly closing their personal accounts without warning. As the credit crisis tightens its grip on the nation, financial institutions are scrambling to mitigate their losses, and it’s the innocent account holders who are paying the price. This shocking revelation, brought to light by a recent New York Times report, paints a dire picture of the crumbling financial sector and the severe consequences it’s imposing on everyday Americans." AMG-news.com (Nov. 15, 2023)
We've heard of bank "bail-outs" where the government, using taxpayer money, props up banks to ensure they remain liquid and solvent. Well now we are hearing of "bail-ins" where the bank simply dips into a customer accounts and removes 💰 without warning or communication...Wells Fargo stands out and an offender.
For Self-Sufficient YOU! members who have U.S. accounts, e.g. "snowbirds", etc., you are encouraged to be vigilant in being aware of which banks seem to be vulnerable or known for such actions, and reflect on any potential risk with regard to your situation.
In Canada 🇨🇦, I haven't heard or seen of any of this type of shenanigans but that doesn't mean it couldn't happen. Who would have ever thought that bank accounts of peaceful protesters would ever be frozen?!?
Whether you have U.S. 🇺🇸 or Canadian 🇨🇦 bank accounts or both, what are some options to help avoid and protect yourself from all this?
Hold a minimum amount of $ in bank accounts, just enough to cover your monthly expenses including any pre-authorized payments. If you are looking for high-interest savings, consider an independent brokerage account be it with an investment management firm or DIY such as Wealthsimple or Questrade (use QPass Key: 586607926458921) in Canada and where Self-Sufficient YOU! members receive a special perk.
Spread out your $ across different banks up to the CDIC insurance deposit limit of $100,000 for each in order to minimize risk and protect your ASSets should one decide to pull any shenanigans.
Consider avoiding the "big banks" altogether and choose a local credit union (find a credit union near you).
Keep enough 💵 at home for emergencies which could be useful if your bank should your bank temporarily close or reduce hours, if there are power or Internet outages which we saw in 2022 in Ontario, etc. Aim for at least one month of expenses, more is better.
Swap any excess 💵 cash into gold and silver, consider 1oz and fractional sizes for gold, and minimum 1oz sizes in silver, both can be useful for wealth protection and preservation, privacy and barter-ability. If you can't hold it, you don't own it!
Comments