No. of Recommendations: 1
So, dummy question but I'd like the answer. I always forget what the answer is, so best I keep asking. Maybe one day it will sink in and I hope everytime I do ask, another innocent investor learns something, too.
But with the value of our shares growing steadily over the years, how many accounts do you need to hold your shares? If 500K is the SIPC limit and the additional insurance worded vaguely, should I be splitting up my IRA account that holds over 500K?
Advice?
Thank you in advance.
SD
No. of Recommendations: 8
This doesn't specifically answer your question, but thought his video does a very good job of addressing the bigger question of:
"What Happens to Our Investments if Schwab, Fidelity or Vanguard Collapse?"https://www.youtube.com/watch?v=wz64z1YuL0AHe also happens to be a Berkshire Hathaway shareholder. Bonus video he did on:
"7 Powerful Lessons From Warren Buffett's 2023 Berkshire Hathaway Letter."https://www.youtube.com/watch?v=kHLps0v6s8YI know the mental junk filter tends to engage when someone posts randoms videos, but I hope some will agree these have a high signal to noise ratio.
No. of Recommendations: 10
"What Happens to Our Investments if Schwab, Fidelity or Vanguard Collapse?"
I happen to have accounts at all three. Not really by choice, more due to overly complicated US retirement account policies and general laziness. Maybe some forced risk reduction I guess.
I personally don't worry about SIPC limits. I place concerns of collapse of the major brokerage houses in the same pile as things like end of world disaster prep. If things get that bad any diamonds and gold buried in the back yard will not be all that useful. I feel my time is better spent enjoying life with a general awareness of the risks. If civilization crumbles then foraging, hunting and farming skills will have been the best investment.
Jeff
