Laundromat Ownership: Is This Passive Business For You?
How to Buy a Laundromat - Or Other Passive Business
The mortgage broker who pivots to create different streams of income! Jud Holmes, an established mortgage broker, saw a downturn coming and sought to purchase a coinless laundromat for more passive income.
He takes us through his eye-opening experience of researching, purchasing and his first year running his coinless laundromat. From searching bizbuysell.com to discovering the profitability of laundromats, Jud discusses the different kinds of business structures, what to look for when reviewing a business and how they can fit your lifestyle.
Is this income stream for you? We discuss:
The SBA loan process
The role of systems in managing a business efficiently
How the business operates on a day-to-day basis.
With less than 10 hours a week of management, Jud's laundromat venture offers somewhat passive income and a cushion to the slow periods in his primary mortgage business.
We also talk about how Jud maintains a work-life balance, his plans for expansion, and why adding a laundromat to your investment portfolio might be a way to recession-proof your portfolio.
Key Takeaways:
Items to look for when reviewing a purchase of a coinless laundromat.
Surprise issues that came up after purchasing the laundromat.
How much time the day-to-day operations take, along with ways he’s streamlined the process.
Mental hurdles Jud went through before and after purchasing the laundromat.
Links:
Time Stamps
00:32 Deep Dive into FDIC and Banking Safety
02:57 Understanding the FDIC's Role and Banking Regulations
10:06 Exploring the Process of Starting a Bank
14:15 Maximizing Deposit Insurance: Tips and Tools
20:51 The Complex World of Banking and Interest Rates
31:24 Closing Thoughts and Diversification Advice
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Welcome to Me Financial the podcast designed to inspire your financial life.
Hello everyone. And welcome to the me financial podcast. I am Michelle Moses, your host. I am a certified financial planner, a realtor and a former e commerce store owner. And today I am here with Andy Woodward. He has been on my podcast for now. This will be the third time. Welcome Andy. Thank you. Glad to be back.
Thank you. I always enjoy our conversations.
And we are going to be talking about banking and the ways you can keep your deposits safe. Mostly we're going to be talking about the FDIC, uh, how it came to be and again, how you can keep your deposits safe because of what happened last year. So we're going to kind of explain what happened and the changes that the, um, banking industry is making because of that.
So as a little intro for Andy, he's on the advisory board of the Ganey Business Bank in Scottsdale, Arizona, and he's worked in the banking and banking off and on for more than 30 years. His main job is an information technology consultant, and he's worked in a raise of capacities in banking and the banking industry.
Let me trip over my words a little bit more there, Andy. No worries, you got it, you got there in the end. I did get there in the end, so. Dismount. Yes, and here we go, right into the FDIC.
I know this is riveting for a lot of people, but I do think that it's really important that we talk about this because, um, from what I was reading yesterday, um, 47 percent of, of deposits in banks are uninsured.
And to me, that is a huge red flag. And I understand that some of it is uninsured for reasons because it's a transactional account. You know, money's going in and out a lot on a daily basis. Um, but I do think that this is a very important topic because if there's that many people that have uninsured deposits, they need to know how to get themselves insured.
Well, the other thing is, is you got to look a little bit deeper into that number. For example, during the, uh, Issues with Silicon Valley Bank, which leads to a lot of this discussion. Uh, there were companies like Roku, for example, that had 487 million. in Silicon Valley Bank, of which approximately 250, 000 was insured under conventional insurance.
Right. So numbers like that can really skew the uninsured deposit numbers. And that's what I was reading about was that 90 percent of their deposits were uninsured. Right. And the issue became that it was concentrated in one industry. And because it was concentrated And so that's kind of what they're looking at now is You know, how much do you have uninsured because banks kind of depend on having uninsured deposits, uh, and then why, and then making sure that it's not in one industry.
So I found that very, very interesting.
Yeah, you know, just a little background in banks and the FDIC is the FDIC doesn't just insure banks, uh, in order for a bank to become a chartered bank, right? The FDIC needs to approve their overall plan, including the plan for how they want to diversify their portfolio and lending, whether they have 50 percent in real estate, 25 percent in capital and improvements, and then You know, a myriad of other loans that actually needs to be approved by the FDIC, and they actually monitor this on a quarterly basis.
And so when banks sets out and when they're actually chartered, I mean, they have goals for different industries that they're targeting, I guess. Absolutely. You know, in Arizona, for example, you can't. really expect to be an effective bank without having a portion of your lending going towards real estate, whether it's commercial or residential.
It's just, we're such a real estate driven economy here, where in Silicon Valley, where Silicon Valley Bank predominantly worked. You know, you can't be there without having a significant percentage of your investments in technology. But it's that overall portfolio mix that the FDIC looks at when they're assessing risk in the, uh, Because that'll keep you safe and keep the runoff, which is exactly what I just mentioned.
Yeah. Yeah, exactly. But you know, at the end of the day, the, the FDIC wants to make sure that, They're not going to be in the hole for a significant amount of their an insurance company. They're going to make sure that they're not going to be responsible for a significant amount of losses. And the way to do that is to stay on top of it in the first place.
Yeah. And they even go in and, um, uh, Do you like tours of the bank? You know, I mean, they go in and they do inspections, they regularly are audited. And that was the other interesting thing about like Silicon Valley Bank. It was the FDIC that made the decision with them as well as Signature Bank and the other banks in trouble at the same time.
They're the ones that did. decided, nope, you're no longer a bank and pulled their charter and then actually did the plan for cleaning up the assets and moving them over to other more, uh, healthy financial institutions. Yeah, because they were so concentrated on one industry and they had such a high percentage of uninsured deposits.
Well, not only that, I think one of the big issues with Silicon Valley Bank was the, what's called mark to market of their bonds. Yeah. Uh, they had a significant number of long term bonds and, you know, those bonds were at about two and a half percent and they were two and ten year bonds that they had intended to actually wait until those bonds had matured.
So they were what's called hold to maturity. And what happened is then interest rates go to 5 percent on the 10 year instead of 2. 5 percent and then in what's called mark to market. So oversimplification here, uh, with a bond, let's say a 10 year bond at 2. 5 percent for 1, 000. You're actually seeing the discount on that, which is 780 when it's two and a half percent.
Well, that same bond, when interest rates went to 5%, if you remember there was an inverse relationship between the value of the bond and interest rates. So as interest rates go up, the value of the bond goes down. So that same bond went from 780 down to 610. So you're talking a 20 percent drop in their assets.
And then at the same time, People looking around going, Hey, I could get more over here, banks that are willing to pay 4%. I'm going to withdraw my money and move it over to another institute. Yeah. And that was another thing that the banking institute that I was, uh, that I've been reading about for the, you know, for in preparation for this was the, uh, In the high that people can just move money so quickly between banks and how much that's affecting the banking industry.
So it's really interesting of how they're kind of changing. But, um, let's back up a little bit with the FDIC and what you were saying about, you know, Um, getting the charter. So would a bank, could a bank be a bank without the FDIC? No. I mean, there's credit unions. There's. Right. But they have their own insurance.
Right. And brokerages firms have their own insurance and they're very similar in the coverages that they have, but you pretty much need to fall into one of those three lanes. There isn't. There's no other lanes. Okay. Getting a bank without it. And the FDIC, uh, came about, you know, after the stock market crash in, uh, 1929, and it was created in 1933, I believe, somewhere around in there.
And, uh, it was really interesting fact that no bank has been, I guess nobody has, uh, Uh, there has always been insured that, and all banks have been saved since then, so it really does work well. Nobody's, uh, they've had a 100% payout on insured deposits right. Since they started in 1933. One thing I couldn't find was, uh, how much was lost in uninsured Mm-Hmm.
deposits in that timeframe. Uh, I can imagine it's millions, but. I don't know. I don't know. Like, even in the case of Silicon Valley Bank, they actually managed to pull that all together and get it all parted out so that nobody lost any money, insured or otherwise. Right. And then to replenish the fund, uh, they are basically creating an assessment for the banks that benefited the most from the bank splitting up.
And, uh, then they, they replenish the, uh, the funds. The insurance fund through that in case everybody was wanting to know, well, yeah, I mean, it's like any other insurance banks have to pay a premium in order to have that insurance across the deposit accounts and that's assessed based upon, you know, the, the deposits and things like that.
And like you said, you know, that some banks actually got a pretty sweet deal out of getting clean deposits from, uh, Uh, yeah, from an insurance, well, and it's guaranteed by the government. I mean, it's kind of like buying treasuries at 5. 4 percent right now, or they're not that today, but, uh, you know, it's kind of a sweet deal.
So yeah. Uh, okay. So back to the FDIC. So you are very interested that the FDIC does more than just this insurance. So do you want to touch upon that too? You know, they actually, uh, because they do insure the banks, they're the ones that decide whether or not the bank gets to be a bank. And then throughout the life cycle of it, banks have to report on a quarterly basis.
And actually, if you want to look up these things, there's a organization called the Federal Financial Institution Examination Council. Sounds very government y. FFIEC. Yes. All these things are very exciting. And you can actually pull what are called call reports on each individual bank. They're publicly accessible.
How long does it take a bank to become a bank? Uh, in the case of, uh, Ganey, it was almost, uh, two years, a lot of it, there was at least a year worth of regulation. New banks aren't really formed all that often anymore, you know. It's all about acquiring. It used, well, it used to be they were formed all the time and I forget what the number is in Arizona.
We have, we have actually a pretty small number of banks here considering the size of the population that I believe at the time we started on. Uh, Ganey, there were 16 community banks in the state and, you know, to put it in perspective, that's not very many. There's about 40 in Utah. Yeah. Uh, but there were only in 2023 and 2022 when we got our charter, there were only about 20 banks formed that year across the entire country.
And so why does it take so long? Do you have to raise a certain amount of money before you, okay, and that does it have to be? Uh, what am I trying to say? Like, across industries, like what they were talking about. So you've got to have like a small portion of. It has to be diverse. Yeah. So, uh, you need a minimum of 15 million and they discourage anybody from owning more than 9.
9 percent of the bank. Okay. So that 15 million needs to be distributed across 11 or more people. And then if you're above 10 percent ownership, you actually need to be vetted by the FDIC and you'd be surprised like even going through board members, board member approval for the actual legal board. I'm on the advisory board, but for the legal board, You know, they turned down anybody that's had a short sale and things like that.
Oh, yeah. I could imagine that. Yeah. And they actually. They want responsible people. Right. They actually really look closely at this. So, uh, that's the reason why, you know, they discourage ownership beyond, uh, 9. 9%. And that is, so they're, you know, even going through this process, there were a lot of people going 15 million.
That's no big deal. You know, the error, I'll just write you a check right now. And, uh, No, the FDIC doesn't like that. They want, yeah, they want it to come from multiple people. They want you to build your business. Right. I mean, that makes more sense than being dependent on one person. Right. And that, but they also approve, have to approve the lending plan.
So what percentage of the deposits are going to be lent out and what the ratio is as far as where that goes. Wow. Okay. And going through, uh, Uh, the approval for gaining business bank. They didn't really, they actually, because there's so few banks going through the process right now, they were very involved.
Uh, so they make sure that everything is lined up to start with, even before going through the process. The process of it. Okay. And it really does take quite a while. So you're basically kind of applying to raise money and then there's a whole process of while you're raising the money and then you actually get the charter for the bank.
So the money actually, the investment money initially goes into escrow. So once you get over that 15 million, then you can apply to Uh, break escrow, in which case you can then start signing leases. Oh, so it's like buying a property or something. So you can then sign leases on, on, uh, A building. A building and things like that and hire people and, uh, what have you.
Okay. And so do you, how, I've assumed that this pays, costs a lot of money to do this. Jackie, are you paying the FDIC fees as you're going along in this? I don't know what the fees are. I wasn't involved. Really? Oh, I'd be interested in knowing that. But I would assume, I would assume that is the case. It's certainly, it's, Probably about a million and a half dollars in order to get set up as a bank because, you know, there's a lot of things that actually need to be done.
Well yeah, you gotta pay a lot of lawyers to write a lot of things up and I mean it's kind of like starting any other business or a fund, you know, an alternative asset fund or something. It just takes a lot of cash to get going.
Uh, okay, well let's, are you okay if we shift gears a little bit because I want to shift gears on, um, The, how to keep your deposits safe because I've gotten this question, especially from the older crowd, you know, people that downsize, they start to have a lot of cash, you know, they're going into retirement and they want to make sure, and I want to talk about, there is a tool online, you guys, and it's called EDIE, E D I E, the Electronic Deposit Insurance Estimator.
We're going to be full of all of these little Yeah, they're very, very, very interesting and riveting, uh, whatever you call, what do you call those acronyms? Yes. So it's edie. fdic. gov. Uh, and if you go on there, it's a really simple tool. You can just type in whether you've got an IRA or a trust. And I think we need to touch on that too.
We'll touch on how, when you have a trust, you can get more than the 250, 000 of insurance. That's So I think most of us know, um, that with banking, when you have a deposit, you, or when you have a, an account, you are insured up to 250, 000 for each of the, per each of the, uh, owners of the account. So if you've got a joint account.
With two people on it, you would be insured up to 500, 000 for that account. And so that's what we're talking about when we say insured deposits or uninsured deposits. When you're up over and you're at 501, that 1, 000 is not insured, but your 500, 000 in that joint account would be insured. Uh, so I think it's really important that you know this, um, on your, You know, when you're going to bank, uh, which amount is insured, because if something does happen, it happens quick, you know, and so you're, you're not going to have time to be moving all of your stuff around.
And what you're talking about there is what's referred to, another exciting term, separate capacity. So, what you have in, FDIC insurance, and this applies to credit unions and, uh, brokerage accounts under the SIPC as well. They all pretty much have uniformity on this. Separate capacity includes things like single accounts, joint accounts that you mentioned, whether it's a retirement account, a trust account, a business account.
Each one of those separate capacities have their own coverages. Right, and I think to simplify it, we could say just separate accounts or separate people. It's not really separate accounts. It used to be that you know, and it was really a misunderstanding because it's not the case that somebody would just go ahead and say, well, if I've got a million dollars, I'll just open four separate accounts, but that's not the case.
If they're four separate single accounts, you're only covered for 250, 000 total. But if you, for example, have an individual account, And then you have a joint account with your husband, that's 750, 000. Right, and then if I had a trust. Right, then it's a million. Same thing with a billion, or not a billion, a business account.
Yeah. Uh, mix those two. No, that's okay. Uh, but if it's an LLC, because when I was doing it, I did my LLC and it was just for 250. Right. Yeah. Because that's considered one entity. It's one entity. Yeah. So let's get into the trust too, because the trust is really interesting. So they actually just changed this law and you can actually go up to five beneficiaries now, which is 1, 250, 000.
Um, and this is based upon The beneficiaries of the revocable or the irrevocable trust. So if you go to the bank and you, um, put your, and if you have a trust, you basically need to make sure that all of your checking accounts are in the name of that trust in order for you to quote unquote fund the trust.
Uh, and that is based in, then your insurance is based upon the beneficiaries, uh, that you have. And so I think that's where it might get a little fishy and you want to make sure that you're covered. Um, but it is a way to get more. insurance rather than 250. The other way to get more insurance. And I thought this was really interesting is that some banks will offer like if they've got a huge deposit.
So let's say you've got a 2 million deposit and that bank really wants your deposit. Banks will get together and they will jointly, um, insure it. So it's almost like you can have your account in the one bank, but then it is. Spread, their insurance is spread across different banks. Yeah, like, uh, WinTrust has a product called MaxSafe, where they can spread it across 15 community banks.
Uh, there's a handful of products out there now. That, that do that. Right. And I hadn't seen a whole lot of it, but, um, I'm not in the banking industry, so I don't. No, there's another thing called CDARS, uh, C D A R S. I forget what the acronym stands for, but it's a similar situation for certificate of deposits.
That's it. That allows the big, I think this is primarily the bigger institutions where they're able to spread the certificate of deposit load across multiple banks as well. Yeah. So, and I, I know not all banks would offer that, but you know, there are organizations that they can join to where you could say that you're not having to go from bank to bank to bank and have all of these, because we all know how fun that is.
Uh, to have all that paperwork and all those logins, um, that you could have your money in one bank account and then get the insurance from multiple different institutions. Yeah. So there are solutions out there. I just think that you just need to be aware so that you're not, you know, caught. I mean, cause you could technically, I mean, if we had a lot of bank failures, I could definitely see where people wouldn't be as lucky as what happened with Silicon Valley.
That is the point of the FDIC and one of the reasons why this is so boring is because our banking system is considered safe and secure and it's largely because of the FDIC and their actual policies. It's one of those things that you can sleep at night knowing that your deposits are safe. Right. You know, it's a, it's.
It put into place in order to avoid runs on the bank where everybody thinks I'm going to lose their money, which happened during the depression, so they pull their money out, keep it in their mattress instead. Right. Versus now we have insurance and everybody pays into that. Right. It's the actual reliability of it.
The banking system itself, and it's one of those things that's, it's pretty rare globally in that how well it works and it's got a long track record of success, almost a hundred years. I know, it's a really long time.
So there was another thing I want to ask you about that I found really interesting was that the banks, uh, the Federal Reserve's discount window.
So when deposits outflows exceed. I guess they're reasonable expectations. Uh, they weren't trying to avoid banks tightening credit because we all know that that doesn't, that sends everybody into a panic when we tighten credit. Do you know anything about this federal reserve discount window? Because it seems like a lot of banks are not.
Uh, prepared to use it? No, it's like every bank has to participate. It's actually a requirement of being a bank. And basically what it is, is it's a short term lending capacity between, uh, or lending facility between banks. And what it's intended to do is that banks hold, so extra deposits that aren't lent out are typically held in U.
S. Treasuries. Thank you. So those banks can then put the U. S. Treasuries as collateral to the, uh, repo window and then actually borrow against cash deposits that are available and they're going to have to pay the market rate. So when What is a repo window? Uh, so that I know how do you explain all this? I know you and I have talked about it, uh, extensively in the past and it is, uh, it's very convoluted.
Yeah, it really is. But it's banking has this whole other market in the background called the repo market. It's not really a repo in the typical sense of possession or anything like that. It's basically allows for banks that are short on cash. to be able to put up collateral and borrow cash against other banks.
So when the Federal Reserve is setting interest rates, the only rate they're setting is the repo window rate. So that's how much a bank can borrow, what a bank can borrow. From other banks. Right. So it's, it's the interbank lending rate is what it is. So it allows banks if they need cash, if they're short on cash, to go to the repo window, pay the Fed rate in order to borrow that cash.
It's really what it's for. Right. And so, and what I'm reading is that a lot of banks are not prepared to, they automatically tighten credit rather than go to the repo market basically to go borrow more money. Well, again, it's a short term facility. It's not really It's just overnight. It's not really intended to be one of these long term It's like, I want to lend out money, so I'm going to borrow it from the repo window.
It's a very volatile thing. And the, the interest rates, even though the Fed sets the interbank lending rate, some of those repo window rates, like if there's a shortage of cash and everybody's being really tight with it, some of the interest interest rates in the repo window have spiked to 16%. Which is why we've seen the government infuse cash into it.
Which, why do you think that's happening? I know we're totally getting off topic of keeping your deposit safe, but why do you, why do we think that this is happening? Because this has been happening for like five years now that they've had to deposit money into it. It's usually a liquidity crisis. Right.
And that's another thing I was reading is that deposits are becoming less and less. Right. Well, for banks. But the thing is, is deposits are essentially what allow a bank to lend. Right. So. If I just think I have deposits, what are they actually able to lend? Uh, right, right. It's the issue. And there are people just not keeping their money in banks and they're just putting it to work because I think we get, uh, especially in a low interest rate environment, what happens is people want to take more and more risk.
They have more appetite for risk, uh, because they want to make more and it's harder to make more. And so then you're pushing yourself, you know, to, and you take a lot more. Well, ever since, uh, prior to 2008, the great financial crisis, uh, there was always an opportunity for depositors in regular savings account to make more than the inflation rate.
So when interest rates went to zero, even with inflation at 2%, you still weren't able to keep up with inflation by having money stored in the bank. So because of that, You know, the intention was to keep people from holding onto their money and take more risks and get it out in the economy versus sitting on it.
Until we return to a situation where savings accounts will keep up with and stay ahead of inflation. We really need to return to that situation in order for banks to be Right. And this is why inflation, yeah. And inflation is so important. Right. Yeah. But also interest rates being able, allowing depositors to actually stay ahead of.
Right. And, and, uh, stay ahead of the rate of inflation. Right. So. I know it's a very complicated world guys. I mean, that's, it's, it all goes together. Yeah. And you know, it's been unfortunate, but you know, the 14 years of, uh, 14, 15 years of zero interest rates. You know, really kind of was detrimental to the depositors and people that actually hold money for safety reasons.
Right. Yeah. And just for like the rainy day funds. Yeah. I mean, I think that's the way we can think about it is that you're holding money for a rainy day fund just in case something happens. And by us having interest rates at zero, we're all out there, you know, trying to get a return on something where it's not in the bank.
And so that's where we're trying to kind of return to. And as you mentioned, uh, earlier, because it, it, we have all of these electronic mechanisms for being able to easily move funds between bank accounts. Banks need to be a lot more competitive on the deposits. So they need to pay a market interest rate.
So The old school arbitrage of being able to, you know, pay people a tenth of a percent and then lend them money even to bonds at two and a half percent. Yeah, well, the, the playing field is getting more even now with the information. So information is traveling at the speed of light. And so their customers are able to make more, which is good, you know, but the banking industry kind of needs to move with it, but it's also a little bit of short term thinking when it comes to interest rates because the banks themselves are generally buying treasuries that are You know, 90 days rather than buying these 10 and 30 year treasuries.
So they're in a situation where because they do need to be adaptive and competitive, you know, they, the vehicles that they're using are very short term. Right. Right. Well, and so there's such like a victim to whatever's happening with the interest rates too. Yeah. And that's what happened with the whole mark to market scenario that, that.
They couldn't pay, uh, market interest rates because they had essentially bought bonds at two and a half percent. Well, and it too long of a time period. Yeah. Yeah. Okay. Um, is there anything else that we're missing here? I feel like we kind of covered some high points. I think that's the big stuff. And again, it's just, you know, we talked about the FDIC, but the National Credit Union Administration, NCUA handles credit unions.
It's the same except the credit unions don't cover CDs and money market funds and the FDIC does cover. Right, but they do still have separate capacity that single and joint accounts are treated differently. Right. Each individual across each one of the account types, so there is ways. Yeah, it's the same kind of thing.
They're the same. It's the same insurance, uh, but it's a different organization, uh, but they don't cover, yeah, the CDs and the, and the money market. Uh, but I think they have other tools where that you can cover that. Um, and so you guys, I really think a great tool if you are worried about your deposits is to go to the eddie.
com. FDIC. gov. It's E D I E. Um, and you can just type in every single account that you have at a bank. Um, and I should talk about that we did not talk about all of your brokerage and you know, if you invested in a stock, a mutual fund, if you have taken your money out of cash and put it into another vehicle, It will not be covered by this, by any of this insurance that we're talking about because you've taken your money and you've put it into another vehicle like a stock, then it's going up and down with the stock market.
So if your stock goes to zero, then obviously you've lost all of your money. But if it goes up and you'd make more. Um, and so, Yeah, and the SIPC, which it handles that, they don't cover you from taking risk yourself. Right. They only cover your cash that's in the account. They're not. They cover, the SIPC covers, uh, 250, 000 in cash and 250, 000 in equities.
Uh, but even then, you know, we're not even, we're not even getting into custody because there were, you know, at the same time Silicon Valley Bank was having its issues, there was a lot of concern about the market market that Schwab had, for example, they had a lot of long term treasuries that they intended to hold until the very end.
Anyway, uh, one of the complicated, it's a little outside the scope of this discussion. One of the last things that I wanted to mention that really never comes up, but it is a consideration and it is the claims process. So if a bank does go under to the point that they're not able to, you know, move it off to another institution, which they've successfully been able to do most of the time, especially the last 40 years.
It does, you do have to file a claim if the bank goes under and it takes about one to three months to get your money back, but the covered deposits are 100 percent returned at that point. Okay. Interesting. All right. So paperwork, you'd have to fill out paperwork to do a claim. Okay. So it's not, you know, that's one of the reasons why the FDIC prefers to, before they get to the finish line and completely go under, go, uh, we're going to pair you up with another financial institution and part it out.
So there is the continuity. Um, with, with those accounts. So the accounts stay open, but if it does completely fail, then, you know, it's like any other bankruptcy process. You need to file a claim, but they typically take about one to three months. And your funds would be frozen basically for that amount of time.
Okay. All right. No, that's a great tidbit. I'm glad that, uh, you mentioned that.
Uh, so you guys let us know if you have any questions or anything. I know that we, uh, covered a lot of, uh, acronyms, government acronyms that are super duper interesting, but I do think it's very important given the amount of uninsured deposits that there are out Please make sure that you cover your checking accounts and savings accounts or high yield savings accounts wherever you have your money and make sure, um, that you are covered and you don't have too much in there.
And Andy, thank you so much for being on again. I appreciate it. Of course. I always enjoy it. I think the key is to diversify, whether it's across accounts, banks, types, you know, don't hold all your money in one spot. Yeah. Don't put all your eggs in one basket that, I mean, I just think that that goes for investing.
It goes for your accounts. I mean, it goes for everything, honestly. Yeah. Yeah. Just diversify. So thank you so much for listening guys. Uh, please let me know if you have any topics, um, leave me a review and please tell your friends and thank you so much for listening. I really appreciate you and all your feedback and your time.
So thank you.
Disclaimer: The information provided in this podcast is for general informational purposes only and should not be construed as professional financial advice. Always consult with a qualified financial advisor or professional before making any financial decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.