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14 WHO IS YOUR CUSTODIAN B efore you decide on the form in which you will hold cash you must first decide on the person or institution you will select as a custodian. The choice of a cus- todian is your single most important decision. The custodian is the holder of the cash. This is the person or institution you are looking to for liquidity safekeeping and the return of your cash. Excellent custodians and excellent custodial relationships are the backbone of successful cash management. You may hire a banker a broker or an invest- ment advisor as a custodian. The question is who really has the cash If your bank keeps its cash in a correspondent bank you need to know what that bank is and whether or not it is sound. If your broker or advisor uses a brokerage firm for custodianship and clearing you need to know what that firm is and to understand your legal relationship with it. The people who lost money in the MF Global failure were surprised to hear that their brokers broker was MF Global and that some or all of their gold or money was gone Here are your options for selecting a custodian 1. You You hold cash in your mattress behind your kitchen cabinet or in one or more home safes. Storing cash yourself is economic and offers privacy and proximity. However you run the risk of theft or home invasions which is why I often recommend more than one safe. You may also run the risk of forgetting where you put your stash or that your heirs wont know. For a great overview of your home storage options see Solari Report How to Buy Install a Safe httpssolari.combloghow-to-buy-and- install-a-safe-with-dan-perkins 2. Depository You can store physical cash and valuables in a depository in or near your jurisdiction or anywhere in the world. A depository is an enterprise that specializes in storing valuables for customers. Some depositories require names. Some will operate with only Custodian Bank httpsen.wikipedia.orgwikiCustodian_bank Mint httpsen.wikipedia.orgwikiMint_facility Depository institution httpsen.wikipedia.orgwikiDepository_institution Bank httpsen.wikipedia.orgwikiBank Bank safe deposit box httpsen.wikipedia.orgwikiSafe_deposit_box Credit Union httpsen.wikipedia.orgwikiCredit_union Brokerage firm httpsen.wikipedia.orgwikiBrokerage_firm Clearing httpsen.wikipedia.orgwikiClearing_28finance29 Depository bank httpsen.wikipedia.orgwikiDepository_bank Government httpsen.wikipedia.orgwikiGovernment I. Options For Stashing Cash