Seriously, these are good points but why only follow them when the economy is down? In my opinion, really smart businesses do these things all the time. My business partner is a total non-geek. But he does these things and I think it's part of the reason we've done well over the last 5 years (he runs the money, I run the dev).
Also, the FDIC thing is tough. If you have a business where purchases/payments are coming in from a merchant account daily, I'm not sure how you can keep that account balance under $100K at all times.
Taken right from the FDIC website at http://www.fdic.gov/deposit/deposits/insuringdeposits/
"The basic insurance amount is $100,000 per depositor per insured bank. Certain retirement accounts, such as Individual Retirement Accounts, are insured up to $250,000 per depositor per insured bank."
They further describe:
"You may qualify for more than $100,000 in coverage at one insured bank if you own deposit accounts in different ownership categories."
They then describe what the different ownership categories are:
"The most common ownership categories are: Single Accounts, Certain Retirement Accounts, Joint Accounts, Revocable Trust Accounts" (obviously this is not a complete list)
And lastly, single accounts were described as:
"These are deposit accounts owned by one person and titled in that person’s name only. All of your single accounts at the same insured bank are added together and the total is insured up to $100,000. For example, if you have a checking account and a CD at the same insured bank, and both accounts are in your name only, the two accounts are added together and the total is insured up to $100,000.
Note: Retirement accounts and qualifying trust accounts are not included in this ownership category."
So what this all says is:
You may have a total of $100,000 in your combined Single Accounts (checking, savings, etc)
You may have a total of $250,000 in a qualifying IRA.
You may have a total of $100,000 in a trust. (Although trusts get more complicated, this is not entirely true).
You may have a total of $100,000 in a joint account, your partner another $100,000.
By the way, thanks for all the comments here on my article and at the article itself. Was a real treat to see the activity yesterday!
(That may be what you said with "each bank's accounts," but the article is definitely mistaken).
As multiple trading names operate under one registration (E.g. Lloyds & Scottish Widows) you have to be careful.
It has a few instances of 'recession advice' but nothing dramatic. I'd like to see articles actually specific to recession (ie: probably wouldn't work as well otherwise) advice. Business stuff like recession specific marketing, hiring, financing, etc. . & personal finance stuff like how to take advantage of real estate markets, money markets, etc.
Some things change in a recession (eg higher rent/buy ratios). It'd be nice to see them addressed.
As Warren Buffet put it: Be fearful when others are greedy, and greedy when others are fearful.
Well, there's a crap-ton of fear floating around right now, so maybe it's a good time to buy. Maybe not the best time, but if you know when that is, you already know the future so you've got nothing to worry about, right?
Most of us will still be around when we pull out of this recession, so a buy anytime that we're in it is a good call... you may have to wade through a little muck, but it doesn't really matter if you make $10 or $20, what matters is that you make money.
Just put up a blog post on it earlier today: http://www.newmediacampaigns.com/page/tough-times-squeezing-...
While this article shows you the best ways to not lose money during the recession, I think it's important for businesses to continue focus on making more money despite the economic conditions. If you spend efficiently during a recession, you'll do very well.
I have to disagree on the point about putting 20% down on a property! I've grown up around property investment and in my opinion the current economics are brilliant. I'm getting ready to borrow more and more to snap up some great bargains. The important thing with property is cashflow... it doesn't matter whether prices fluctuate. Lower capital values just mean higher cashflow... so bring on the good times!
You should invest them.
If you are conservative, you can go for Treasury Inflation Protected Securities (TIPS)