I will have 3 banks that I will be using. One bank will be my current personal checking account. All of my income will deposit into this account. This account has checks that I can write, and a debit card – although I typically use a credit card, and pay it in full every month. This habit will be no different if I should have a windfall. I doubt I will have enough money remaining to threaten my assets if my bank goes belly up. All of my accounts will be below $250,000 which is the most that FDIC will reimburse a bank client. This does not include my investment account(s).
I will also have a savings account. This account will have 6 months of income for expenses in bad months when the income received isn’t enough to cover my bills. This savings account will also hold my taxes, and tenant’s security deposits. To protect this account, I will be using another bank. There are 2 banks across the street from my 4 Story Building, and I will likely choose one of those banks for simplicity. If I should need to deal with cash for any reason, I can always go to the bank across the street, and since I am legally not a business, there will be no concerns with embezzlement. The savings account will have my emergency fund which will not be used unless absolutely necessary. It will have my capital gains taxes which I will have to pay out in the first quarter of the year. There will also be any security deposits that would be paid to me. Legally, I must share the interest gained from the savings account.
I will have a checking account on the behalf to help my friend. This will be $250,000 which will be used to pay her credit card off, and make any significant purchases that I would see the reasoning to. I will not buy her a house as she will not be able to afford the house. If she wants a new (or used) automobile, then I will use that money for that reason. If she has purchases that she will need to make, I will suggest to her to use her credit card, and I will pay the card off every 2 weeks.
I will likely not need a Swiss bank account. If my estimates of my significant purchases is accurate, I will likely only have about $500,000 left after the significant purchases, and setting up the investment account. If need be, I can acquire another bank account or withdraw cash from the account to place in my safe. I will then spend cash first before drawing on my bank accounts. If I need to purchase something online, I will pay with a credit card, then use my checking account to pay for that purchase, and then deposit cash back into my account. Another option will be to get gift cards which will be for companies like Amazon, Apple, or PayPal.