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.
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.