In a September, 2015 online interview in Marketwatch, author Lee Child said he (and his fictional character Jack Reacher) kept his money in cash, "I bank at the first national bank of Sealy Posturepedic."
Having spent the past week reading, back to back, three books about Bernie Madoff, I'm inclined to agree with Lee Child. Cash is king.
I'm a wimp when it comes to financial risk. I wouldn't know a split strike conversion if it bit me on the butt (as it did Bernie's victims who saw their money vanish into Bernie's split strike conversion sinkhole). Over the years I parked my stash of acorns in a succession of brokerages, but stayed with low risk investments and finally ended up in 2008 with all of my accounts in a $1 per share money market fund. I don't know how I got so smart, but while other people were moaning about losses in 2008 (after crowing about profits in earlier years), I wasn't losing. I wasn't making big returns, but I wasn't losing principal.
What became even more important to me was security. I now want three things for my money: security, stability, access. I moved my money to an FDIC insured bank, parked it in a savings account. I can access my account online (which I do daily), or in five a minute walk I can be in the lobby of nearest bank branch.
I sleep well at night because I know my $$ is secure. But I may need to get a bigger mattress.
Penny Pincher
(link to Marketwatch/Lee Child article:)
http://www.marketwatch.com/story/like-jack-reacher-lee-child-is-wary-of-technology-and-shuns-the-stock-market-2015-09-22
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