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Comment by ctvo | Hacker News Reader

> It seems to me, your financial advisor should've had a plan for rolling this cash through CDs or short term bonds and distributing it across multiple institution to decrease your exposure or at the very least increase your FDIC insurability.

Who do we hire to plan and manage this process to ensure we have adequate cash flow? Why would any small or medium size business take on this overhead? When some other part of the financial system endangers whatever mechanism we were using here, will you be back asking why we didn't just keep money in a bank somewhere?

I'll be blunt: You're not that smart. You're not that experienced. You're not an expert on managing "FDIC risk" even if you read about it this weekend.

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> When some other part of the financial system endangers whatever mechanism we were using here, will you be back asking why we didn't just keep money in a bank somewhere?

No. The point is that a bank is better than a safe but that diverse assets are better than a bank.

> You're not an expert on managing "FDIC risk" even if you read about it this weekend.

Exactly. And this is why, if you have a critical business dependency you should hire an expert and not ask my advice which the parent poster did.

> you should hire an expert and not ask my advice which the parent poster did

Sorry, who has asked for your financial advice exactly?

The commenter asked me what financial advice I thought was poor.

> What financial advice was that? That SVB was a good bank for Startups to use? It was the recommended bank by our Merchant Provider Stripe.

> Sure it’s easy to identify poor choices after the fact.

My reply was purely in the context of that question. You yourself asked further advise here.

> Who do we hire to plan and manage this process to ensure we have adequate cash flow?

> The commenter asked me what financial advice I thought was poor.

I did not, you had just assumed we followed some poor financial advice for having chosen SVB in the first place:

> I think you were following some very poor financial advice.

Which I asked you to clarify as we never sought any financial advice. SVB was chosen because it was recommended to use for Startups.

> You yourself asked further advise here. > Who do we hire to plan and manage this process to ensure we have adequate cash flow?

I never asked this, nor would I ever dutifully seek the financial advice from random internet commentators who's become experts at predicting bank failures after the fact.

My bad. I mixed up commenters on that last bit.

> Which I asked you to clarify as we never sought any financial advice. SVB was chosen because it was recommended to use for Startups.

Right. And what I'm saying is not that the bad advice was using SVB. Of course you can't predict which bank is going to fail. That's kinda my whole point.

When I said I thought you got some poor financial advice, I was assuming you had a financial person who put your money in this vulnerable position. Which I guess wasn't the product of poor advice but of getting no advice at all.

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