These are uncertain times in the financial markets. We here at the Methuselah Foundation strive to ensure that your donations will retain their value through equity market volatility, allowing them to be put to good use in the MPrize fund or for SENS research. From the desk of our co-founder and CEO Dave Gobel:
The Methuselah Foundation’s funds have been and are fully invested in FDIC insured bank bonds and accounts diversified across many major well capitalized banks. No one bank holds more than $100,000, thus ensuring 100% FDIC coverage of the entire corpus.
No CD has a maturity of longer than 12 months, and the bonds are laddered to mature (and roll over) across the calendar on a periodically smooth basis. We have recently modified the size of new CD purchases down from $100,000 to $95,000 so that it will not exceed the $100k FDIC insurance threshold as interest accrues. In the unlikely case of a bank default, the Methuselah Foundation will lose neither principal NOR accrued interest.
When we have received donations of marketable securities (stocks) we have usually sold them quickly rather than holding them. At this point, September 2008, the Methuselah Foundation’s funds are entirely in FDIC insured accounts diversified over more than 25 different banks. We hold no stocks, uninsured bonds, or any other “at risk” instruments.