Ep 120: Bank Busts & Safeguards for Your Investment Funds

Ep 120: Bank Busts & Safeguards for Your Investment Funds

Listen Now:

The Smart Take:

There has been a lot of misinformation regarding and uncertainty caused by the recent bank failures. You may have concerns about whether your money is at risk whether at a bank or at custodians such as Charles Schwab, Fidelity, Pershing, or TD Ameritrade.

Hear Kevin Kroskey, CFP®, MBA give a summary of what happened at Silicon Valley Bank and explain why your bank account should be thought of as a loan to the bank (because it is!). Conversely, he’ll detail key investor protections you benefit from by not having your account a general liability of a bank but a segregated account at a custodian. He’ll go further and explain how mutual funds and ETFs held in your investment accounts allow additional safeguards and segregation of your assets.

You’ll learn about coverage you may have through the Securities Investor Protection Corporation (SIPC), excess SIPC coverage custodians may have to protect affluent investors, and, as an example of the safeguards, what happened to investors’ segregated accounts held at Lehman Brother’s bankruptcy during the GFC.

Have questions?
If you’re ready to explore a relationship and gain more clarity and confidence around your retirement, taxes, and investments use this link to schedule a free 15-minute call with one of our experienced and credentialed professionals.


Click the below links to subscribe to the podcast with your favorite service. If you don’t see your podcast listed with your favorite service, then let us know, and we’ll add it!

The Hosts:

Kevin Kroskey, CFP®, MBA – About – Contact

Tyler Emrick, CFA®, CFP® – About – Contact