[professoretc]

You don't necessary have to have all your funds spread out enough that every account is under 250k; you just have to determine how much you are willing to risk. E.g., if you split your funds between two banks, if one of them goes under, you lose 50%. Your risk threshold determines how many splits you need; only if it's 0 do you need to keep every account under 250k.

[scarface74]

My risk threshold for cash is $0. So yeah, it would be split across however many banks.

Of course I don’t have all my positions in cash and I take into account the necessary risk/reward equation into account.

But then again, I would never work for a non public company where part of my compensation comes from “equity” and I sell/diversify all my after tax RSUs within 6 months after that vest. So I’m very risk averse about holding positions in any company I work for

[isignal]

You can just buy short term us treasuries instead of trying to spread out 250k everywhere.