What will happen to your investments if you have them in a major brokerage — like Schwab, Fidelity or Vanguard — that goes bankrupt?
Personal finance expert Rob Berger explains in today’s video.
He also addresses the question: How can tell I tell how safe my bank is?
In his answer, Rob mention this ratings agency as a resource: https://weissratings.com/en/banking
Here’s what SIPC covers: “SIPC first divides up the broker’s remaining assets among investors, then uses its own funds — up to $500,000 per account, with a limit of $250,000 in cash — to buy the same number of shares you originally owned and replace your cash. Depending on the amount of property the brokerage is able to recover, you may receive more than $500,000 and SIPC has been successful in making most customers whole, says Josephine Wang, CEO of SIPC”
Follow Rob at his YouTube channel: https://www.youtube.com/@rob_berger