I have a portfolio with around 5M in fidelity. I wonder if I risk losing them all should Fidelity go under? FDIC only insure like 200k? What do you do in this situation? Blind tax: 500k
I don't think you understand how stocks work unless you bought 5 million worth of fidelity stocks.
Could you please elaborate on this?
Brokerage is not a bank. You won’t lose your stocks/assets when the brokerage goes down the same way you lose your savings when a bank goes under. The SIPC will transfer your assets to a different brokerage in the case it goes under. The only way to lose money when fidelity fails is if you owned actual equity of fidelity.
What does SIPC do when Fidelity goes under?
Fidelity is never going under lmao. And Fidelity doesn't own the stock, you do.
Any company can go under.
If fidelity goes under then your assets are transferred to another brokerage. You own the securities, not fidelity. If you're paranoid to that level then you really should be storing gold bars under your bed
What happens when the ETF issuer goes under? Most of my portfolio is in some ETF
You are gonna receive cash equivalent to how much it was worth at the time of the failure
Unlike the money you deposit into your bank savings accounts, the chance of losing stocks you bought through fidelity is close to zero. Since fidelity is a brokerage and not a bank, we have SIPC instead of FIDC, which is similar but a little different.
How different? What is the SPIC limit?
SIPC covers cash/securities in brokerage whereas fdic covers cash in your savings account. SIPC limit is 500k
How does someone this dumb have a $5M net worth?
Or maybe the question is how come someone this smart can't figure out how to make money, or is he really as smart as he thinks he is? Btw, my net worth is close to 9m, 5M is just what I have in one Fidelity account.
FDIC only applies to money Ask your financial advisor
I don't waste money on scams, that's how I make money.