How safe are your assets?

Recently I wrote a post on the safety of investment assets in the wake of the Lehman and AIG meltdowns. Even still, retail and individual investors are noticeably nervous about the safety of their funds.

Last night on the radio, I heard a spot in which a consumer was asking whether to go with an IRA without FDIC insurance or whether to make sure he had one with FDIC insurance. This morning both of the early morning shows had guests discussing which asset classes are safe and which are not.

What to do?

As a result of all this talk, a college buddy who is a Certified Financial Planner and a Senior Vice President at one of the big brokerages sent me a PDF from the consultancy Booz & Co. which lays out in detail the specifics of how accounts are protected at U.S. investment firms by SIPC, FDIC and CAPCO.

Investor Protection at U.S. Registered Brokerage Firms

Please read this document and use its information in conjunction with advice from a qualified CFP like my friend John before you go out and make a rash decision you will later regret.

Yes, these are difficult and volatile times. But don’t let fear dictate your investing decisions.

Related posts
How safe is your money?
Some people may get stiffed by the FDIC: check your bank

Other resources Safe & Sound ratings
Is Your Brokerage Account Safe?, Kiplinger
How to Choose a Financial Planner, CFP website


Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.