Bank Busts & Safeguards for Your Investment Funds

Retire Smarter with Kevin Kroskey, CFP® & Tyler Emrick, CFA® CFP®

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. Here's some of what you'll learn in this episode:

• So much misinformation around the banking collapse right now. (3:17)
• The details of what happened and what went wrong. (8:30)
• Why were investors caught off guard by the risk in commercial banking? (18:03)
• Some of the differences in the way different institutions manage your money. (28:11)
• Kevin's opinion on what he thinks could happen moving forward. (36:15)

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.