📢 We've launched! Get 15% off our brand-new bond courses thru 11:59PM ET on 4/30/2024 for Financial Literacy Month - enter coupon code bondfans2024 at checkout - see links below for more details! ⭐ Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners ⭐ Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters ⭐ Or get both & save $100: www.diamondnestegg.com/home#_paa2isucf ⭐ Join our super-supersaver membership for regular market updates & monthly live member Q&As 👉 ua-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin SOURCES: home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202303 www.reuters.com/markets/rates-bonds/fed-seen-delivering-half-point-rate-hike-this-month-2023-03-07/ banks.data.fdic.gov/bankfind-suite/bankfind www.fdic.gov/resources/deposit-insurance/faq/ www.jpmorganchase.com/ir/fixed-income investor.bankofamerica.com/fixed-income/credit-ratings www.citigroup.com/global/investors/fixed-income-investor-relations/credit-ratings www.wellsfargo.com/about/investor-relations/credit-ratings/ www.federalreserve.gov/releases/lbr/current/ www.moodys.com/research/Moodys-downgrades-SVB-Financial-Group-senior-unsecured-to-C-from--PR_474735 www.reuters.com/markets/us/silicon-valley-banks-demise-began-with-downgrade-threat-sources-2023-03-11/ www.sipc.org/for-investors/what-sipc-protects Thanks for visiting our personal finance channel! We hope this free content will help fast-track your financial journey! Everyone's financial journey is different. Please note that there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances.
Hello Jennifer. Thank you for your amazing tutorials. I am retiring in 3 years. I would like to create a ladder, but I am confused about how to do it. I heard you were going to make another video? Also, I live in Florida where there is no state income taxes. I appreciate your help.
The way to get $500,000 in coverage is you have two separate accounts with different names each with $250,000. i.e. John and Mary. John & Mary -Trust or LLP or LLC or one in just John’s name and one in Mary’s name., or put the name along your child’s name. It just can’t have the same name on both accounts. Or put $250,000 in one bank and $250,000 in another bank.
I was looking to get educated on what might happen if my brokerage firm became insolvent. For example, if I had $1 million in my brokerage account invested in different securities like mutual funds, ETFs, bonds, and some broker CDs I think my assets would be separate from the brokerage firm so I would be able to receive them in case of insolvency. I know the CDs would be subject to whether they had FDIC in case of the issuing back guess taken over by the FDIC. Sn educational video on this would be helpful for us. Thanks!!
My understanding is that you are covered UP TO $500,000. That's it!!! Of that amount, $250,000 can be cash. If your account has a value over $500,000, better transfer the amount over the limit to another brokerage. That's how I read the SIPC brokerage insurance.
Yes on banking at more than 1 bank! When I had identity theft years ago my primary accounts were all drained. Had I not had other funds at another bank, I would not have been able to cover my bills for the > 6 mos it took to recover my money. Took a full year to clear it all up and I could not get everything the thieves did off my credit rating. Nightmare.
They need to be of different categories. IRA, ROTH IRA, Trading cash account, Account in name of deceased for benefit of, etc. If you have say two cash accounts, they will be combined as one for insurance purposes. Same goes if you have two IRAs of the same category. That's my understanding of the rules.
Where were all the bank regulators that were suppose be watching out for mismanagement like what happened at SVB? How were they allowed to go 8 months without someone in charge of the risk management department? All the government regulation and NONE of them worked!
Our financial system is infested with sharks out for themselves. Our regulators are more reactive, not proactive. Sorry, but that seems to be how it always will be. Protect yourself with enough knowledge to keep ahead of trouble. Jennifer is doing her part very well.
Smaller banks aren’t under the same scrutiny by the regulators than the larger, due in part to rule changes made in (I believe 2018) which both Ds and Rs pushed for. One could opine that Liberal states like California and New York just “happened” to be the most lax,played into these “problems” in regulating, but as Francis Urquhart said: “You May say that - I couldn’t possibly” (House Of Cards).
The same way Leman Brothers and Bernie Madoff ripped off huge amounts of money for many years. The banks never pay for failing at their job. They knew way in advance they were in trouble. We tax payers foot the bill every single time. Disgusting.
The bigger problem is Janet Yellen’s comment that rural bank’s FDIC insurance may NOT cover their collapse!! She also stated the mat SHE would decide who is covered or not.
I agree and there should be pushback against Yellens power grab. It's only a matter of time until the current administration weaponizes this power against people they don't like. Not to mention how incompetent she is.
I use Chase for my operational direct deposit checking and I recently added a Capital One 360 Performance Savings (plus I am building a CD ladder with Capital One). I've been surprised with the number of days it takes to move money from Chase to my Capital One accounts. I would love a video about why banks seem to hold on to your money -- is this on purpose?
Thank you again Jennifer! Your effective professional advice has been a very valuable contribution to my retirement portfolio. You are providing a wonderful service to your community!
We've got 50 years experience with multiple US financial crises, whether it's interest rates, gas prices, housing meltdown, bank, gov't shutdown, etc under several different administrations. No panic here, just keep our ears open and pivot when necessary.
No I think this is different because it's going to just get worse and worse. Our leaders sold us out. They aren't even trying to help the economy. They have been spending money like it's water.
Jennifer, thanks again for giving us the most timely, concise and thorough information just as we are forming the exact questions that you have already provided the answers to, and what else to consider to protect our money in these times. This video was so packed with good info that i watched it 2 times to grasp it all! Really looking forward to your SIPC deep dive (specifically with Fidelity). How am I feeling? Much, much better after watching your video with actionable advice!
Would love an SVB deep dive but I would also like to include a comparison between SVB and First Republic in terms of how and why the big banks came in so quick to bail FR out while they balked at SVB, leaving it defaulting to FDIC and over the limit FCIC coverage.
Just my humble opinion, but: 1) FR has a lot of very wealthy customers (Zuckerberg apparently has his mortgage there) and the big banks don’t want the millionaires and billionaires to have liquidity issues. 2) the FDIC can’t keep promising to backstop all deposits at every subsequent bank to fail, so Yellen and Dimon worked out this deal to try and stop a further cascade 3) it keeps the big banks treasury based reserves from sliding further in value
Hi Jen. Most of the accounts at SVB were over the $250,000 FIDC limit. Many people with well over $250,000 have their money at Brokerages like Vanguard as I do. Some Brokerages have SIPC that cover up to $500,000 of which $250,000 covers cash. IN ADDITION, there is a separate insurance called “EXCESS SIPC” which is an additional insurance policy brokerages like Vanguard purchase to cover higher amounts. I was told by Vanguard customer service 1.4 million is the Excess SIPC limit. I would like to get your take on this. Thank You.
If you haven't as yet, suggest purchasing insurance such as hard assets like gold and silver. These have been real money for thousands of years and still accumulated by central banks to this day. There is a reason for this. Small price to pay for insurance against a dollar that is losing value exponentially.
Thanks for the perfect topic for these unstable times! So mad I was waiting to buy more treasury bills figuring the rate was going to go up, and then bam, the rates dropped.😢
I would be interested in video on SIPC. I am feeling a lot more relaxed this weekend than last! This is thanks both to what I did and what the fed did.
I like to have 2 brokers that includes 3 banks. I learned during covid that my main bank closed and locked it's doors and didn't even want to answer the phone. Found a nice hometown bank that stayed open, was not crowded and had plenty of real people there to help you out. Transfer 90% of my dough outta the sorry bank into the new one. Came in real handy as I was buying a house at the time.
I really enjoy your videos. I think you have a talent for explaining finance to the common person. I would be interested in your take on the SVB and subsequent failures
My understanding is that SVB was not your average mom & pop bank and that the clients were mostly multi-million dollar hedge fund investors that knew what they were getting into... The media doesn't ever seem to tell the whole story which in turn contributes to panic !!!
Great follow up, I was a little late to the TBill ladder you had suggested and I am working on diversifying my portfolio more. I am interested in doing a 17 week $15K TBill ladder for $60K as long as the interest rates are going up. I just wasnt sure if you still thought TBill investing was still applicable with the recent lowering of the maturity returns.
First Foundation Bank has 4.5% online savings account. Paramount Bank (Mo) has 3% checking account. I am sticking with 17 week TBills that are still staying close to 5% this past week. I think after the next couple of weeks, the TBills may just start going back up again.
Yes please do a video on SIPC at length, I am still trying to understand how our 401k at brokerages are protected and also our taxable account which amounts to millions of dollars by the time we reach 65.
How do you feel about holding a sum of physical cash as a last resort backup in case of a massive bank meltdown? I try and hold at least a months worth of expenses in reserve. I know I don’t make anything on it, but you know it’s immediately available 24/7/365 no matter what happens in the banking industry.
Many brokerages also carry excess SIPC insurance protection that kicks in once SIPC coverage limits are met. Fidelity, for example, has a policy that covers $1 billion “total aggregate excess.” Schwab’s is $600 million. It’s unclear how much PER CLIENT those aggregate totals would cover. (We’d need to know how many clients at each firm had accounts above $500,000.) My financial advisor only deals with Schwab, and now I wonder if I need to move everything above $500,000 to another brokerage, even if it means managing it myself.
Thanks Jen. Please cover SIPC and excess insurance coverage by the brokerage firms in your next video. Also how the brokerage firms define 'separate accounts'. I would really appreciate it!
Thanks for the latest video and covering FDIC and SIPC. Fidelity offers additional coverage in their brokerage accounts which they refer to: Excess of SIPC. Would you be able to help us better understand what this coverage is and if it is a common practice in the industry?
@@DiamondNestEgg Also, please cover if SIPC limits of $500/$250K are per different accounts or an aggregate limit (e.g is it $500/$250K each for ROTH IRA, Trad IRA, Brokerage, and 401K, or is the limit a total limit regardless of each separate account type? Thanks!
If companies like Fidelity, Schwab, Vanguard. etc. start to go bust, nothing is going to save any of use. Don't kid yourself. FDIC and SIPC is for relatively small problems. If there is a major earthquake in the financial markets, I don't see how they save everyone. Not enough money to do that.
Thanks for the help with adding a beneficiary to the treasury direct I’m on that helped a lot, I couldn’t have done it without you, I was trying to figure it out but I knew it was going to take me forever
I'm not sure how I got interested in T Bills, but over the last two weeks I've been watching videos from your channel and others. From the research I've been doing with bank savings accounts, I've found the laddering concept very attractive and have set up a couple and am just waiting for the next 8 weeks to roll by so the cycling can start. I'm keeping it just in the 4 week ones, and also have a larger $ amount 4 week for an experiment, as I'm thinking of instead of having money in an interest bearing account, simply front run the banks and take the full amount of the earned interest without them taking their "cut". Imagine that, the public beating the banks at their own game!! PS: I'm going straight to the source, Treasury Direct.
Lots of folks asking for deep dive on SIPC, would add how some brokers purchase additional insurance over and above SIPC limits. Schwab and Vanguard come to mind
No one knows the future, so, I think it’s wise to also have a FDIC insured high yield savings or money market account available to react to unexpected opportunities.
Thank you for the video. A video on SIPC would be great! One thing to note that I learned from another video on UA-cam, a lot of brokerages provide additional protection. For example, TD Ameritrade provides $149.5MM on securities and $2MM on cash through supplemental coverage provided by London insurers.
I’m helping a friend move funds from primary bank (over $250k) to another bank. She tried to do this online to avoid standing in line at the bricks and mortar bank. However she has a revocable trust, and the bank we want won’t open an online account for a trust. She’ll have to go to a physical bank which is disappointing. 😢
To-do before the next bank meltdown IF you have investments valued >$200K. I'm going to look through your other videos for advice which would be more applicable to those of us who have less than $100K net worth and no significant money for investments.
I finally subscribed to your channel all the while giving you "likes" after viewing all your episodes. I'm not too thrilled with what is ocurring with this financial debacle and it had me validating (one again!) if FDIC coverage was 500k for a joint bank account. Still have no idea so I'd appreciate it if you would clear this up for me and the wife. Finally if SIPC only covers brokerage accounts only for $500k what are high wealthy accounts suppose to do if they have for example $1,000,000 in their brokerage account? Jennifer Rules!
I hope Diamond Nest Egg does a video on SIPC coverage, as I also have questions and could not get them answered today when I called Fidelity. But I can answer your question on FDIC coverage on joint accounts. If you and your spouse hold a joint account (with both names on the account as co-owners) then the FDIC coverage is 250K per person on the account. Therefore, your joint account is covered up to 500K.
I just opened a couple of 12 month CDs with Midfirst bank! One at 4.75 and the other ten days later at 4.66! I asked them to tell me about their bank! They said they were privately owned and very conservative which made me feel better! I also have a high yield savings account with them paying 3.5.
Thanks for the video. I just subscribed!! Your words have helped calm me down, knowing that we're already doing the right things. I'm far more cautious than I would have thought I would be at this point in life, and I'm hoping to be able to get back to more aggressive equities investing some time in the future, but right now, I'm sleeping well knowing that I'm in pretty safe waters. Happy Birthday to your son. Have a good weekend.
All brokered CDs 3 month - 10 year offered through Fidelity are currently over 5%, though some of them are not call protected (the bank can choose to end them early and pay you interest up to that point). Overall these CDs seem to be a better deal than T-Bills since the collapse of SVB.
Got the Capital One 5% 11 month cd and Ally Bank 5% cd for 18 months. I’m interested in 2 year and 3 year t-notes but concerned those rates are headed down next month.
Thanks for all the good info,opening account at a second fdic bank just for emergency purposes ,that will give me 3 places to get fast cash at a average 3.8 %,I am not greedy at age 85!
Nervous about On-line Banks such UFB Direct...maybe a video about the safety of On-line Banks as they tend to pay high Interest Rates...How do they do it? What's the risk? FDIC insured? Collapse risk?
Just found out that my Wells Fargo IRA account is not FDIC insured, so in the process of moving all of the money to fidelity. Benefit is that the Wells Fargo has not performed well at all in the past 3 years. Putting money into Fidelity and buying T bills and Brokered Cd.s
I'm in the same situation but have no idea how to do this. I can barely access my current Roth IRA online within my bank making pennies in interest. Does the IRS care if I move IRA money to a different custodian?
thank you, Jennifer, for being so informative! I'm very young looking to learn more about financial allocation. You made some great points. So now I'm subscribed!
Do you have an account, if so what has your experience been like? I tried signing up yesterday, but website form keeps loading a "Session Time Out". Customer service wait time 30+ mins....
@@vivianlai9040 I have had no problems with them. But it did take Wells Fargo 6 days to transfer my funds to them initially. UFB also sent me a debit card that I can use at a local bank up the street from me. However, I've never used the card yet because it's my emergency fund.
Thanks for sharing - good info. The one thing I feel a little concerned about is a potential default. As you've said, we're living in turbulent times. What used to be unlikely now who knows? Too many wingnuts out there. What happens should treasuries suddenly have problems? What's your take on gold? What would be the implications for CDs? Thanks and appreciation for your efforts. Always good to learn. These days good lessons and guidance very important.
We love your show. But we want to know if excess SIPC insurance is limited to $1 billion with Fidelity and Fidelity holds $3 trillion in assets. How can I become first in line to file and how does one file with FDIC, SIPC, and extra insurance in the event of a run on the bank. Thank you in advance for answering
I’d like to clarify the SIPC limits. if I have 3 accounts, regular, Ira and Roth IRA accounts do they each have a 500,000 limit. Also would love your feeling about credit unions
Since you asked-Truliant FCU (based in Winston-Salem, NC) has been promoting a 13 month CD @ 5.35%. We put some $ in that. Also since I am near retirement I’ve been considering doing an in-service distribution from my Fidelity 401k to a MYGA (multi-year guarantee annuity). Objective would be capital preservation + income guaranteed at near 5%. Thoughts? SIPC video? YES please! Thanks for your informative presentations Jennifer!
I bought a MYGA at the end of January and hit the top with an A+-rated company paying me 5.55% for a 7-year MYGA. I love that I can defer taking the money almost forever and, therefore, defer paying taxes on the interest. More people need to investigate MYGAs. Each State has a fund to protect losses up to a certain amount if the insurance company goes belly up. Seems more banks go bust than insurance companies. Choose a strong insurance company.
@@davidosisek3867 Athene was offering 3-5-and 7-year MYGAs through limited distribution channels at higher rates. Big banks only. Independent financial advisors did not have access to this product. I came across it by looking at their web site when I was investigating a purchase. I bought mine at Wells Fargo. The rates have been drastically reduced lately. I got lucky. It pays to constantly be looking for what you want.
I have two bank accounts. But, whenever I transfer money between the two accounts, they always seem to take 3 days before the money is available to me. So, I am confused about your suggestion on using this at times of crisis (useful, if you anticipated >3 days ahead).
Jennifer, can you do a video explaining the risk of parking too much of your cash in a money market mutual fund at brokerages like Fidelity, Schwab , Vanguard, TD Ameritrade…?
Although, I am a recent subscriber, I have enjoyed your videos. Regarding FDIC failed banks, in case you haven’t already covered it, the 250k includes accrued interest up to the date of closing and none after that. If on the other hand the FDIC finds another bank to buy as in a PA purchase assumption, and you were receiving a too good to be true rate of interest, the new bank can break the contract, advising you of such and you can take your money elsewhere but the above market rate ride is over.
This I didn't hear you cover, but maybe important. QE is back, meaning inflation is likely to rise over 70's rate even with the fake CPI. Fed balance sheet rose $300 billion this week, so they wiped out 4 months of QT in one week. Also, any bank sitting on underwater bonds can take loans at the Fed window at par value, more QE
A question that I'm sure many of your viewers have is how to best guess when to move money from short term bonds or CDs into longer term instruments to capture better rates for a longer period of time. I don't want to move too soon and see rates go even higher or wait too long and wake up with a rate drop. If you have a crystal ball maybe you could do a video with your insights. Thanks.
Thanks for helping us out in these complicated times. I recently loaded up on laddering T-Bills. I bought two 26-week T-Bills with the same PAR amounts ($40K) on issue dates of 02/09/23 and 03/16/23. Both T-Bills has the same investment rate of 4.895. However Treasury Direct withdrew differing amounts from my bank account. A difference of $11.13. What am I missing?
The rates could be different beyond the 3 decimal points. Sites usually display the rate down to 3 decimal points, but in reality rates are defined beyond the 3 decimal points.
Truly love your educational videos and appreciate the work you put in them. Question for you: should one be worried about t-bills if the debt ceiling is not raised? What will happen to our t-bills?
N.A. stands for “National Association,” another name for the National Bank category, not North America. Good info, new subscriber. Retiree with emergency savings in a low-yield, but safe, credit union savings account.
Comforting to hear you're still DCA in equities and investing in treasuries for your low risk funds. As a 401k investor, that's what I'm doing. You have a great channel and a divine interest in helping others.
I get mine monthly, not compounding, just reinvent in money market or highest cd available. For the compounding, you wouldn’t see any coupons and only get it all at maturity is my understanding. Which would be kinda awesome, just let the coupons add up and then buy blue chip dividend stocks that look attractive, that’s my play. I interested in MO, KO, JNJ and PG. Its not sexy but I’m conservative. Maybe Jennifer will chime in if I’m an idiot or way off base.
@@200Nora I have wondered that too. At Schwab, all CD's over one year pay interest on a regular basis instead of compounding as a regular bank CD would if you chose that option. But that being said, does the APY they show reflect the non-compounded of the brokered CD or the what the APY would be in you re-invested the interest at the same rate?
@@wa210 thanks for the reply. I’ve done models and checked other’s intrinsic value models on MO, KO, JNJ and PG…..none are close to buys…been that way for years it seems, hopefully they will drop significantly. KO is close on some but others way off. It seems with Grahams 25 percent for margin of safety, would keep me waiting forever. What did you that of Schwab falling so significantly? It’s intrinsic value is 50 and vary from model to model but the five i saw were all around low 50s. I’m always afraid discounting the cash flow wrong but follow the book and double check of UA-cam tutorials.
Hi Jennifer. What about credit union security? How are they affected byt both the possible Debt ceiling crisis or the current Bank closure scare? Also, have you ever done a video about credit unions?
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⭐ Or get both & save $100: www.diamondnestegg.com/home#_paa2isucf
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SOURCES:
home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202303
www.reuters.com/markets/rates-bonds/fed-seen-delivering-half-point-rate-hike-this-month-2023-03-07/
banks.data.fdic.gov/bankfind-suite/bankfind
www.fdic.gov/resources/deposit-insurance/faq/
www.jpmorganchase.com/ir/fixed-income
investor.bankofamerica.com/fixed-income/credit-ratings
www.citigroup.com/global/investors/fixed-income-investor-relations/credit-ratings
www.wellsfargo.com/about/investor-relations/credit-ratings/
www.federalreserve.gov/releases/lbr/current/
www.moodys.com/research/Moodys-downgrades-SVB-Financial-Group-senior-unsecured-to-C-from--PR_474735
www.reuters.com/markets/us/silicon-valley-banks-demise-began-with-downgrade-threat-sources-2023-03-11/
www.sipc.org/for-investors/what-sipc-protects
Thanks for visiting our personal finance channel! We hope this free content will help fast-track your financial journey! Everyone's financial journey is different. Please note that there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances.
How safe are T Bills and money markey account inside Vanguard retirement accounts? Thank you!
how people can Transfer Stocks/ETF from one Brokerages to Charles schwab/another firm for IRA and Brokerage account to dealing with SIPC
A deep dive into SIPC would be helpful.
>500k strategies
@diamond nestegg could you respond to Don Geo's Schwab post and any insight on NCUA and NCUSIF used by credit unions.
Hello Jennifer. Thank you for your amazing tutorials. I am retiring in 3 years. I would like to create a ladder, but I am confused about how to do it. I heard you were going to make another video? Also, I live in Florida where there is no state income taxes. I appreciate your help.
Would love to hear more about SIPC and how to protect assets over 500K
Yes! This.
Some brokerage companies have additional insurance coverage over 500k but i do not know how it works.
Yes! Please do a video on SIPC
Fidelity recently made a very detailed post on this on their subreddit, r/fidelityinvestments
The way to get $500,000 in coverage is you have two separate accounts with different names each with $250,000. i.e. John and Mary. John & Mary -Trust or LLP or LLC or one in just John’s name and one in Mary’s name., or put the name along your child’s name. It just can’t have the same name on both accounts. Or put $250,000 in one bank and $250,000 in another bank.
One of the most informative channels in the land. Jennifer = GOAT!
She's the best at what she does and pleasant at the same time. Marcus is a lucky guy!!!
Can you do a video educating us on how safe are our assets held in a brokerage account like Schwab or Fidelity, etc. thanks!!
She told you you're safe to the $500,000 level. After that, you're not.
I was looking to get educated on what might happen if my brokerage firm became insolvent. For example, if I had $1 million in my brokerage account invested in different securities like mutual funds, ETFs, bonds, and some broker CDs I think my assets would be separate from the brokerage firm so I would be able to receive them in case of insolvency. I know the CDs would be subject to whether they had FDIC in case of the issuing back guess taken over by the FDIC. Sn educational video on this would be helpful for us. Thanks!!
My understanding is that you are covered UP TO $500,000. That's it!!! Of that amount, $250,000 can be cash. If your account has a value over $500,000, better transfer the amount over the limit to another brokerage. That's how I read the SIPC brokerage insurance.
@@kenpresant2503 If you had that much money, you should have your own personal financial advisor.
@@thoughtful-woman Why? that won't change anything
Yes on banking at more than 1 bank! When I had identity theft years ago my primary accounts were all drained. Had I not had other funds at another bank, I would not have been able to cover my bills for the > 6 mos it took to recover my money. Took a full year to clear it all up and I could not get everything the thieves did off my credit rating. Nightmare.
Isnt the bank give you zero fraid liability?
Yes, please do an in-depth SIPC video. I didn’t even know this was a “thing.” Now I’m wondering if I have to open accounts at other brokerages.
To be safe, sort of, any time you get to the $500,000 level, you should consider opening a similar account at another brokerage.
If brokerages such as Vanguard, Schwab, Fidelity go under no one's money will be safe- even with SIPC
Please deep dive the SIPC and how to set up different protected accounts with the same institution.
They need to be of different categories. IRA, ROTH IRA, Trading cash account, Account in name of deceased for benefit of, etc. If you have say two cash accounts, they will be combined as one for insurance purposes. Same goes if you have two IRAs of the same category. That's my understanding of the rules.
Are savings and checking considered different categories?
Agree this would be helpful to hear more about.
SIPC deep dive please!!!!!
Where were all the bank regulators that were suppose be watching out for mismanagement like what happened at SVB? How were they allowed to go 8 months without someone in charge of the risk management department? All the government regulation and NONE of them worked!
Our financial system is infested with sharks out for themselves. Our regulators are more reactive, not proactive. Sorry, but that seems to be how it always will be. Protect yourself with enough knowledge to keep ahead of trouble. Jennifer is doing her part very well.
Who's regulating the regulators? The entire system is corrupt.
Smaller banks aren’t under the same scrutiny by the regulators than the larger, due in part to rule changes made in (I believe 2018) which both Ds and Rs pushed for.
One could opine that Liberal states like California and New York just “happened” to be the most lax,played into these “problems” in regulating, but as Francis Urquhart said: “You May say that - I couldn’t possibly” (House Of Cards).
The same way Leman Brothers and Bernie Madoff ripped off huge amounts of money for many years. The banks never pay for failing at their job. They knew way in advance they were in trouble. We tax payers foot the bill every single time. Disgusting.
Just ask Barney Frank.
The bigger problem is Janet Yellen’s comment that rural bank’s FDIC insurance may NOT cover their collapse!! She also stated the mat SHE would decide who is covered or not.
This is bad. This is very very bad.
I agree and there should be pushback against Yellens power grab. It's only a matter of time until the current administration weaponizes this power against people they don't like. Not to mention how incompetent she is.
Fantastic video! Thanks for educating us and keeping us informed
I use Chase for my operational direct deposit checking and I recently added a Capital One 360 Performance Savings (plus I am building a CD ladder with Capital One). I've been surprised with the number of days it takes to move money from Chase to my Capital One accounts. I would love a video about why banks seem to hold on to your money -- is this on purpose?
Thank you again Jennifer! Your effective professional advice has been a very valuable contribution to my retirement portfolio. You are providing a wonderful service to your community!
We've got 50 years experience with multiple US financial crises, whether it's interest rates, gas prices, housing meltdown, bank, gov't shutdown, etc under several different administrations. No panic here, just keep our ears open and pivot when necessary.
No I think this is different because it's going to just get worse and worse. Our leaders sold us out. They aren't even trying to help the economy. They have been spending money like it's water.
Jennifer, thanks again for giving us the most timely, concise and thorough information just as we are forming the exact questions that you have already provided the answers to, and what else to consider to protect our money in these times. This video was so packed with good info that i watched it 2 times to grasp it all! Really looking forward to your SIPC deep dive (specifically with Fidelity). How am I feeling? Much, much better after watching your video with actionable advice!
Would love an SVB deep dive but I would also like to include a comparison between SVB and First Republic in terms of how and why the big banks came in so quick to bail FR out while they balked at SVB, leaving it defaulting to FDIC and over the limit FCIC coverage.
Just my humble opinion, but: 1) FR has a lot of very wealthy customers (Zuckerberg apparently has his mortgage there) and the big banks don’t want the millionaires and billionaires to have liquidity issues. 2) the FDIC can’t keep promising to backstop all deposits at every subsequent bank to fail, so Yellen and Dimon worked out this deal to try and stop a further cascade 3) it keeps the big banks treasury based reserves from sliding further in value
Hi Jen. Most of the accounts at SVB were over the $250,000 FIDC limit. Many people with well over $250,000 have their money at Brokerages like Vanguard as I do. Some Brokerages have SIPC that cover up to $500,000 of which $250,000 covers cash. IN ADDITION, there is a separate insurance called “EXCESS SIPC” which is an additional insurance policy brokerages like Vanguard purchase to cover higher amounts. I was told by Vanguard customer service 1.4 million is the Excess SIPC limit. I would like to get your take on this. Thank You.
I just got out of ameritrade. You should too. There isn’t enough money in the system to cover everyone’s 250,000 minimum. Don’t rely on the banks. 😊
@@sfinvestors5944Same story for Schwab?
If you haven't as yet, suggest purchasing insurance such as hard assets like gold and silver. These have been real money for thousands of years and still accumulated by central banks to this day. There is a reason for this. Small price to pay for insurance against a dollar that is losing value exponentially.
Also NCUA (FDIC of credit unions) up to 250k
Please make SIPC coverage video for Fidelity’s brokerage
Please do a deep dive on SIPC
After watching your video and a few episodes of American Greed a deep dive on SIPC will be appreciated.
Thanks for the perfect topic for these unstable times! So mad I was waiting to buy more treasury bills figuring the rate was going to go up, and then bam, the rates dropped.😢
I would be interested in video on SIPC. I am feeling a lot more relaxed this weekend than last! This is thanks both to what I did and what the fed did.
I like to have 2 brokers that includes 3 banks. I learned during covid that my main bank closed and locked it's doors and didn't even want to answer the phone. Found a nice hometown bank that stayed open, was not crowded and had plenty of real people there to help you out. Transfer 90% of my dough outta the sorry bank into the new one. Came in real handy as I was buying a house at the time.
I really enjoy your videos. I think you have a talent for explaining finance to the common person. I would be interested in your take on the SVB and subsequent failures
My understanding is that SVB was not your average mom & pop bank and that the clients were mostly multi-million dollar hedge fund investors that knew what they were getting into... The media doesn't ever seem to tell the whole story which in turn contributes to panic !!!
Stay tuned for one of our next videos
Great follow up, I was a little late to the TBill ladder you had suggested and I am working on diversifying my portfolio more. I am interested in doing a 17 week $15K TBill ladder for $60K as long as the interest rates are going up. I just wasnt sure if you still thought TBill investing was still applicable with the recent lowering of the maturity returns.
Yes please further explore the notifications on down grades for a bank.
Very helpful and in time! Can you please explain more SIPC insurance? Thank you!
Forbright has a 5.25% 11 months, Synchrony and Alliant 5% 14-12 months
I would like to learn more about the SIPC topic. This is a great channel and I recommend it to friends and family. Thank you for all your hard work!
Your SIPC deep dive video will break the internet. Do it!!!
Is Your Money Safe If Schwab, Fidelity or Vanguard Fail | SIPC Protection
ua-cam.com/video/kY5BswpUlf4/v-deo.html
First Foundation Bank has 4.5% online savings account. Paramount Bank (Mo) has 3% checking account. I am sticking with 17 week TBills that are still staying close to 5% this past week. I think after the next couple of weeks, the TBills may just start going back up again.
Funny that a "flight to safety" (i.e., investing in treasuries) is what caused the collapse of SVB. 🤣😂
Yes please do a video on SIPC at length, I am still trying to understand how our 401k at brokerages are protected and also our taxable account which amounts to millions of dollars by the time we reach 65.
How do you feel about holding a sum of physical cash as a last resort backup in case of a massive bank meltdown? I try and hold at least a months worth of expenses in reserve. I know I don’t make anything on it, but you know it’s immediately available 24/7/365 no matter what happens in the banking industry.
Many brokerages also carry excess SIPC insurance protection that kicks in once SIPC coverage limits are met. Fidelity, for example, has a policy that covers $1 billion “total aggregate excess.” Schwab’s is $600 million. It’s unclear how much PER CLIENT those aggregate totals would cover. (We’d need to know how many clients at each firm had accounts above $500,000.) My financial advisor only deals with Schwab, and now I wonder if I need to move everything above $500,000 to another brokerage, even if it means managing it myself.
Thanks Jen. Please cover SIPC and excess insurance coverage by the brokerage firms in your next video. Also how the brokerage firms define 'separate accounts'. I would really appreciate it!
Thanks for the latest video and covering FDIC and SIPC. Fidelity offers additional coverage in their brokerage accounts which they refer to: Excess of SIPC. Would you be able to help us better understand what this coverage is and if it is a common practice in the industry?
I’m working on this already - in the next few days David
Please also go into more details regarding how “separate capacities” are considered for SIPC.
@@DiamondNestEgg Also, please cover if SIPC limits of $500/$250K are per different accounts or an aggregate limit (e.g is it $500/$250K each for ROTH IRA, Trad IRA, Brokerage, and 401K, or is the limit a total limit regardless of each separate account type? Thanks!
If companies like Fidelity, Schwab, Vanguard. etc. start to go bust, nothing is going to save any of use. Don't kid yourself. FDIC and SIPC is for relatively small problems. If there is a major earthquake in the financial markets, I don't see how they save everyone. Not enough money to do that.
@@rickb2537 inflation and taxes.will do us in first.
Thanks for the help with adding a beneficiary to the treasury direct I’m on that helped a lot, I couldn’t have done it without you, I was trying to figure it out but I knew it was going to take me forever
I'm not sure how I got interested in T Bills, but over the last two weeks I've been watching videos from your channel and others. From the research I've been doing with bank savings accounts, I've found the laddering concept very attractive and have set up a couple and am just waiting for the next 8 weeks to roll by so the cycling can start. I'm keeping it just in the 4 week ones, and also have a larger $ amount 4 week for an experiment, as I'm thinking of instead of having money in an interest bearing account, simply front run the banks and take the full amount of the earned interest without them taking their "cut". Imagine that, the public beating the banks at their own game!! PS: I'm going straight to the source, Treasury Direct.
Thanks for sharing
Bellco Credit Union CD rate is 4.5% for 13 months and 5% for 17 months
Thanks for sharing!
Lots of folks asking for deep dive on SIPC, would add how some brokers purchase additional insurance over and above SIPC limits. Schwab and Vanguard come to mind
Fidelity also purchases additional insurance.
I am overloaded on SVB, please no more SVB info. But I do listen to everything you post.
I would be very interested in your thoughts on the upcoming fed convertion to digital dollars.
No one knows the future, so, I think it’s wise to also have a FDIC insured high yield savings or money market account available to react to unexpected opportunities.
One roof Chase Bank (Fast Bank) and Capital One (Slow Bank) Linked to Acorns.
Thank you for the video. A video on SIPC would be great! One thing to note that I learned from another video on UA-cam, a lot of brokerages provide additional protection. For example, TD Ameritrade provides $149.5MM on securities and $2MM on cash through supplemental coverage provided by London insurers.
Is Your Money Safe If Schwab, Fidelity or Vanguard Fail | SIPC Protection
ua-cam.com/video/kY5BswpUlf4/v-deo.html
I’m helping a friend move funds from primary bank (over $250k) to another bank. She tried to do this online to avoid standing in line at the bricks and mortar bank. However she has a revocable trust, and the bank we want won’t open an online account for a trust. She’ll have to go to a physical bank which is disappointing. 😢
What do you think about the safety of a Fidelity treasury money market fund vs a brokered CD or T-bill?
To-do before the next bank meltdown IF you have investments valued >$200K. I'm going to look through your other videos for advice which would be more applicable to those of us who have less than $100K net worth and no significant money for investments.
Thank you for such an intelligent review of the current financial situation and for your sound advice!
What about the money in Fidelity SPAXX account? Thank you
I finally subscribed to your channel all the while giving you "likes" after viewing all your episodes. I'm not too thrilled with what is ocurring with this financial debacle and it had me validating (one again!) if FDIC coverage was 500k for a joint bank account. Still have no idea so I'd appreciate it if you would clear this up for me and the wife. Finally if SIPC only covers brokerage accounts only for $500k what are high wealthy accounts suppose to do if they have for example $1,000,000 in their brokerage account? Jennifer Rules!
I hope Diamond Nest Egg does a video on SIPC coverage, as I also have questions and could not get them answered today when I called Fidelity. But I can answer your question on FDIC coverage on joint accounts. If you and your spouse hold a joint account (with both names on the account as co-owners) then the FDIC coverage is 250K per person on the account. Therefore, your joint account is covered up to 500K.
Thank you for the important information you share with all of us. I would like to have you do a deep dive on SVB.
yes, Please do a deep dive into SIPC insurance. thank you Diamond NestEgg. Love ur channel!
Is Your Money Safe If Schwab, Fidelity or Vanguard Fail | SIPC Protection
ua-cam.com/video/kY5BswpUlf4/v-deo.html
I just opened a couple of 12 month CDs with Midfirst bank! One at 4.75 and the other ten days later at 4.66! I asked them to tell me about their bank! They said they were privately owned and very conservative which made me feel better! I also have a high yield savings account with them paying 3.5.
Thanks for the jnfo
What do you think of NCUA? Is it truly the equivalent of FDIC? I use a credit union rather than a bank, so hope I’m safe!
Stay tuned!
Thanks for the video. I just subscribed!! Your words have helped calm me down, knowing that we're already doing the right things. I'm far more cautious than I would have thought I would be at this point in life, and I'm hoping to be able to get back to more aggressive equities investing some time in the future, but right now, I'm sleeping well knowing that I'm in pretty safe waters. Happy Birthday to your son. Have a good weekend.
All brokered CDs 3 month - 10 year offered through Fidelity are currently over 5%, though some of them are not call protected (the bank can choose to end them early and pay you interest up to that point). Overall these CDs seem to be a better deal than T-Bills since the collapse of SVB.
Got the Capital One 5% 11 month cd and Ally Bank 5% cd for 18 months. I’m interested in 2 year and 3 year t-notes but concerned those rates are headed down next month.
Thanks for all the good info,opening account at a second fdic bank just for emergency purposes ,that will give me 3 places to get fast cash at a average 3.8 %,I am not greedy at age 85!
Nervous about On-line Banks such UFB Direct...maybe a video about the safety of On-line Banks as they tend to pay high Interest Rates...How do they do it? What's the risk? FDIC insured? Collapse risk?
Just found out that my Wells Fargo IRA account is not FDIC insured, so in the process of moving all of the money to fidelity. Benefit is that the Wells Fargo has not performed well at all in the past 3 years. Putting money into Fidelity and buying T bills and Brokered Cd.s
I'm in the same situation but have no idea how to do this. I can barely access my current Roth IRA online within my bank making pennies in interest. Does the IRS care if I move IRA money to a different custodian?
Do you mean that it’s not SIPC insured? I find that hard to believe. FDIC is for cash, not investments.
@@vivisimonvi If you move it do a direct custodian to custodian transfer. Don't take possession of the money.
Thank you. I've been dithering over treasuries but I'll dither no longer!
thank you, Jennifer, for being so informative! I'm very young looking to learn more about financial allocation. You made some great points. So now I'm subscribed!
What’s your guess about the May I-bond rate now that we have the new CPI-U figures that came out last week?
UFB direct offers both a 5.02 liquid high yield savings and money market accounts.
Do you have an account, if so what has your experience been like? I tried signing up yesterday, but website form keeps loading a "Session Time Out". Customer service wait time 30+ mins....
Yes, I opened up an account with them a few months ago for my emergency fund.
@@barbaraperry2796 - Do you like them and feel they are reliable? Did it take a long time to get your funds moved over to them and settled? Thank you!
@@vivianlai9040 I have had no problems with them. But it did take Wells Fargo 6 days to transfer my funds to them initially. UFB also sent me a debit card that I can use at a local bank up the street from me. However, I've never used the card yet because it's my emergency fund.
Yes, please do an in-depth SIPC video and..........more
Thanks for sharing - good info. The one thing I feel a little concerned about is a potential default. As you've said, we're living in turbulent times. What used to be unlikely now who knows? Too many wingnuts out there. What happens should treasuries suddenly have problems? What's your take on gold? What would be the implications for CDs?
Thanks and appreciation for your efforts. Always good to learn. These days good lessons and guidance very important.
We love your show. But we want to know if excess SIPC insurance is limited to $1 billion with Fidelity and Fidelity holds $3 trillion in assets. How can I become first in line to file and how does one file with FDIC, SIPC, and extra insurance in the event of a run on the bank. Thank you in advance for answering
As always you are the best ❤we love you.
very useful, thanks so much :) - my prediction is, rates will go to 12%
I’d like to clarify the SIPC limits. if I have 3 accounts, regular, Ira and Roth IRA accounts do they each have a 500,000 limit. Also would love your feeling about credit unions
Since you asked-Truliant FCU (based in Winston-Salem, NC) has been promoting a 13 month CD @ 5.35%. We put some $ in that. Also since I am near retirement I’ve been considering doing an in-service distribution from my Fidelity 401k to a MYGA (multi-year guarantee annuity). Objective would be capital preservation + income guaranteed at near 5%. Thoughts? SIPC video? YES please! Thanks for your informative presentations Jennifer!
I bought a MYGA at the end of January and hit the top with an A+-rated company paying me 5.55% for a 7-year MYGA. I love that I can defer taking the money almost forever and, therefore, defer paying taxes on the interest. More people need to investigate MYGAs. Each State has a fund to protect losses up to a certain amount if the insurance company goes belly up. Seems more banks go bust than insurance companies. Choose a strong insurance company.
Curious who you got a 7 year myga from that is A+ rated? Care to share?
@@davidosisek3867 Athene was offering 3-5-and 7-year MYGAs through limited distribution channels at higher rates. Big banks only. Independent financial advisors did not have access to this product. I came across it by looking at their web site when I was investigating a purchase. I bought mine at Wells Fargo. The rates have been drastically reduced lately. I got lucky. It pays to constantly be looking for what you want.
@@rickb2537 thanks
For SIPC coverage, what is considered to be "cash"? Is the money in, for example, a Vanguard cash settlement money market fund "cash"?
Yes interested in svb in-depth video from your perspective!
Is iBond still a good investment during these bank runs and bank failures ???
Thank you 🙏
You go girl! Give us the low down!
I have two bank accounts. But, whenever I transfer money between the two accounts, they always seem to take 3 days before the money is available to me. So, I am confused about your suggestion on using this at times of crisis (useful, if you anticipated >3 days ahead).
Jennifer, can you do a video explaining the risk of parking too much of your cash in a money market mutual fund at brokerages like Fidelity, Schwab , Vanguard, TD Ameritrade…?
Noted - will do!
@@DiamondNestEgg thanks! Suze Orman is also doing her Women & Money podcast on this topic on Sunday 3/25.
Would love to see deep dive on SVB.
Is Your Money Safe If Schwab, Fidelity or Vanguard Fail | SIPC Protection
ua-cam.com/video/kY5BswpUlf4/v-deo.html
Although, I am a recent subscriber, I have enjoyed your videos. Regarding FDIC failed banks, in case you haven’t already covered it, the 250k includes accrued interest up to the date of closing and none after that. If on the other hand the FDIC finds another bank to buy as in a PA purchase assumption, and you were receiving a too good to be true rate of interest, the new bank can break the contract, advising you of such and you can take your money elsewhere but the above market rate ride is over.
Thank you for this thoughtful and professional video!
Thank you for your information and direction during these difficult times. I am glad you take the time to inform us about financial issues.
Thank you for the timely advice. Interested in hearing more about SIPC protections in retirement funds above SIPC limits.
This I didn't hear you cover, but maybe important. QE is back, meaning inflation is likely to rise over 70's rate even with the fake CPI. Fed balance sheet rose $300 billion this week, so they wiped out 4 months of QT in one week. Also, any bank sitting on underwater bonds can take loans at the Fed window at par value, more QE
A question that I'm sure many of your viewers have is how to best guess when to move money from short term bonds or CDs into longer term instruments to capture better rates for a longer period of time. I don't want to move too soon and see rates go even higher or wait too long and wake up with a rate drop. If you have a crystal ball maybe you could do a video with your insights. Thanks.
I don't have a crystal ball unfortunately, but I'll add this onto the list for when the time comes!
Ally on line bank is FDIC and has versatile cd offerings, though I admit I do not know their status.
Please do a deep dive into SIPC insurance!!!❤
Thanks for helping us out in these complicated times. I recently loaded up on laddering T-Bills. I bought two 26-week T-Bills with the same PAR amounts ($40K) on issue dates of 02/09/23 and 03/16/23. Both T-Bills has the same investment rate of 4.895. However Treasury Direct withdrew differing amounts from my bank account. A difference of $11.13. What am I missing?
The rates could be different beyond the 3 decimal points. Sites usually display the rate down to 3 decimal points, but in reality rates are defined beyond the 3 decimal points.
Truly love your educational videos and appreciate the work you put in them. Question for you: should one be worried about t-bills if the debt ceiling is not raised? What will happen to our t-bills?
N.A. stands for “National Association,” another name for the National Bank category, not North America. Good info, new subscriber. Retiree with emergency savings in a low-yield, but safe, credit union savings account.
Comforting to hear you're still DCA in equities and investing in treasuries for your low risk funds. As a 401k investor, that's what I'm doing.
You have a great channel and a divine interest in helping others.
Jennifer, definitely deep dive into SIPC
Thanks for the latest video help us better understand what this coverage is and if it is a common practice in the industry?
SIPC video please! Please explain SIPC - Series 100 Rules if you have time in video.
Many not callable brokered CDs in big institutions are above 5.3%
Yeah, Fidelity has some. The issue with brokered CD for me is the simple interest. Correct me if I am wrong, and they are compounded.
I get mine monthly, not compounding, just reinvent in money market or highest cd available. For the compounding, you wouldn’t see any coupons and only get it all at maturity is my understanding. Which would be kinda awesome, just let the coupons add up and then buy blue chip dividend stocks that look attractive, that’s my play. I interested in MO, KO, JNJ and PG. Its not sexy but I’m conservative. Maybe Jennifer will chime in if I’m an idiot or way off base.
@@200Nora I have wondered that too. At Schwab, all CD's over one year pay interest on a regular basis instead of compounding as a regular bank CD would if you chose that option. But that being said, does the APY they show reflect the non-compounded of the brokered CD or the what the APY would be in you re-invested the interest at the same rate?
@@100perdido good question
@@wa210 thanks for the reply. I’ve done models and checked other’s intrinsic value models on MO, KO, JNJ and PG…..none are close to buys…been that way for years it seems, hopefully they will drop significantly. KO is close on some but others way off. It seems with Grahams 25 percent for margin of safety, would keep me waiting forever. What did you that of Schwab falling so significantly?
It’s intrinsic value is 50 and vary from model to model but the five i saw were all around low 50s. I’m always afraid discounting the cash flow wrong but follow the book and double check of UA-cam tutorials.
SIPC deep dive - yes, please
Here you go: ua-cam.com/video/kY5BswpUlf4/v-deo.html
Hi Jennifer. What about credit union security? How are they affected byt both the possible Debt ceiling crisis or the current Bank closure scare? Also, have you ever done a video about credit unions?
No credit union vids yet, but stay tuned!