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Scott Burns: Will Congress Keep Your Investments Safe ? Maybe. Maybe Not

TedTed
in Fund Discussions
FYI: The passage, or failure, of a single piece of legislation is going to tell us a lot about whether our Congress represents the people of the United States or just its financial service industry donors
Regards,
Ted
http://assetbuilder.com/scott_burns/will_congress_keep_your_investments_safe_maybe_maybe_not

Comments

  • rjb112
    Think you have $500,000 SIPC protection on your account? Think again.
    "Well, it turns out the SIPC has a different definition of “net equity.” It isn’t the value of your account on the last statement from your brokerage firm. It is the amount of money you deposited with the firm, less any amounts withdrawn."
  • rjb112
    Did anybody else read this article? A bit disturbing. Not the easiest article to fully grasp.
  • JohnChisum
    A dollar just isn't what it used to be.

    My take; the govt knows they cannot cover everyone so they sugar coat the numbers to make everyone feel good until that time comes. It makes me wonder if the FDIC insurance runs on the same scheme?
  • Derf
    Yes I read the article & passed it on. Why couldn't you pick up your account & move it to a new broker, thus starting out on new pot of money & full coverage ?
    Have a cool week, Derf
  • Old_JoeOld_Joe
    If you waited until a problem was obvious there wouldn't be any "pot of money" to transfer. Therefore any transfer would have to take place before the problem became known. How would that be managed? Crystal ball? Arbitrarily transferring your entire account every three months?
  • Derf
    @Old_Joe: Brokerage going down the tubes would indeed be hard to predict. I was thinking more inline with trying to keep account fully insured . They're only going to pay on what is put into the account , not the interest or return. Net equity would start over every time you roll the account over, IMOA.
    Derf
  • rjb112
    Derf said:

    @Old_Joe: Net equity would start over every time you roll the account over, IMOA. Derf

    The only thing I could find on the internet was IMAO, not IMOA !
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