No. of Recommendations: 2
Yes, which is why I keep asking how people handle such things on other boards!
While I understand the concept of having multiple accounts at one institution (IRA, non-IRA, Roth IRA) to help avoid the 500K limit of SIPC, I don't know how to handle it when one of those accounts exceeds 500K.
Others have suggested that if you hold these accounts at one of the big brokers or banks (Vanguard, Fidelity, Schwab) that if they fail, you'll have far greater worries on hand, but that feels dismissive to me. Surely, people who had accounts at Lehman Brothers and Bear Stearns were equally horrified, yet one was saved and the other was allowed to fail.
I'm interested in knowing the answer to this as well.
SD
