With the recent banking crisis, I've received a lot of emails asking me two related questions. First, what would happen to our investments at a broker if that broker failed. Second, what would happen to an ETF or mutual fund if the company behind the fund failed? We cover both of these questions in today's video. Join the newsletter: ———————————— Video Resources ———————————— SVB Balance Sheet: Schwab Balance Sheet: What if Vanguard went bankrupt: FINRA: Fidelity Safeguarding accounts: ———————————— Investing Tools ———————————— My Book (Retire Before Mom and Dad): Personal Capital (Investment Tracking, retirement planning): New Retirement (Retirement Planner): Stock Rover: M1 Finance $30 Bonus (IRA & Taxable Accounts): ———————————— Credit Cards & Banks ———————————— My Favorite Credit Cards: My Favorite Online Banks: ———————————— Popular Videos ———————————— 1️⃣ How to Create a 3-Fund Portfolio: 2️⃣ How I Manage 28 Accounts in One App: 3️⃣ 7-Step Financial Checkup: #broker #bankruptcy #robberger ABOUT ME While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money. I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom ( LET'S CONNECT Youtube: Facebook: Twitter: DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions. AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom....(read more)
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Investing your money with large financial institutions like Schwab, Fidelity, or Vanguard seems like a secure way to grow your wealth. However, the possibility of these institutions collapsing always looms on the horizon, which leads to the question of what happens to our investments if it happens. Firstly, it is important to understand that Schwab, Fidelity, and Vanguard are all reputable companies with a solid track record of financial stability. They also have measures in place to ensure the protection of their clients' investments, including fidelity bonds, insurance coverage, diversification, and strict regulations on operations. In the unlikely event of them collapsing, investors need not worry about losing their investments. This is because the assets of the customers are usually held in separate accounts and are not part of the company's financial obligations. For instance, Vanguard, for example, operates under a unique ownership structure where investors in the company’s mutual funds ultimately own the company. Thus, the assets are not part of the bankruptcy estate, so creditors cannot liquidate them to pay off the company's debt. The same applies to Schwab and Fidelity, where clients own the assets they invest in and have access to them directly. After the collapse, a trustee appointed by the court will come in and take control of the company's assets. The responsibility of such a trustee would be to secure the assets of investors under his/her custody, liquidate them, and ensure the proceeds are returned to investors. The process of liquidating assets of a fallen investment company usually takes between six months to a year. During this process, investors might face some delays in accessing their funds, but they will ultimately get their money. In addition, investors are usually notified in advance before any liquidation occurs. In conclusion, the collapse of investment companies like Schwab, Fidelity, and Vanguard is an unlikely event. Still, even if that happens, investors need not be concerned about losing their assets. The fact the companies have robust measures to prevent such a scenario is a testament to their credibility. However, if it happens, investors must exercise patience and trust in the legal process. Ultimately, the law is on the investor's side and their investment's safety is at the forefront of any liquidation process. https://inflationprotection.org/what-would-be-the-fate-of-our-investments-if-schwab-fidelity-or-vanguard-cease-to-exist/?feed_id=98694&_unique_id=6465a3672efe8 #Inflation #Retirement #GoldIRA #Wealth #Investing #brokerbankruptcy #brokeragessafe #moneymarketfundvsbankaccount #FidelityIRA #brokerbankruptcy #brokeragessafe #moneymarketfundvsbankaccount
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