No. of Recommendations: 3
Not sure what the appropriate board would be for this, but a 'beginners' board sounds most appropriate.
I've asked this question from time to time and I always forget the answer.
With all this talk about banks and what accounts are secured by FDIC or SIPC, I'm still not sure how to handle it. I have my accounts with several brokers, Schwab, Fido and Wells Fargo. I have three different accounts at Wells, all under my name and part of my portfolio, with one of them edging over $500K, while Fido has one account that has been sailing near seven figures. I've been thinking I should divide up that account into at least two with a different broker (eTrade? and ???) Do people with multi-million brokerage accounts really divvy them up the second they hit 500K? That would lead to anyone with 10 mil needing at least 20 different brokers??
Please advise.
Thank you.
Dumbass named Smurfdogg
No. of Recommendations: 2
I can't say I've thought about this much although I recall a discussion over at TMF about SIPC. Apparently if your accounts are different types then each account is insured up to $500K. For example, IRA, Roth, taxable.
I know most brokerages also carry separate insurance for much more but I don't know how robust that is, or all of the details.
https://www.tdameritrade.com/account-protection.ht...
The combined total of our SIPC coverage and our "excess SIPC" coverage means TD Ameritrade provides protection up to a combined return of $152 million per customer, up to $2 million of which may be in cash. The Excess SIPC program has a $500M aggregate limit (meaning the most the program will pay for the Excess SIPC portion of the losses). Commodity interests and cash in futures accounts are not protected by SIPC.
I'm guessing based on the size of these brokerages an aggregate of $500M wouldn't go far since that is only about 500 $1.5M accounts.
No. of Recommendations: 1
Yeah, this all confuses me. So is it 152 million per customer (that sounds insane) or 500K for the first 1.5 million customers?
