How much money is safe to keep in Robinhood?
My net worth is around 270k. I have about 210k of that in Robinhood. 95% of my holdings are ETFs. I am 28 years old and I don't plan on cashing out my investments in the next 5 to 10 years. I know that Robinhood has the SPIC insurance of up to 500,000$ for securities. The reason why I like Robinhood is that the interest rate on their margin is the cheapest among all the brokers I have considered. The thing that I am worried about is that if I keep pouring more money into my Robinhood account and it comes close to around 400k or 450k and I leave it there for 3 ~ 4 years, eventually even if I stop putting more money in my account, the value of the securities I own will appreciate and the total worth of those securities might exceed 500k. In February when Bloomberg pays out the yearly bonuses, I would have a large sum of money to invest again and I am wondering if I should create another brokerage account, maybe with Chase bank or someone else? TC: 170k YOE: 3.5 #personalfinance #investments
I know many folks who do high worth investing from Charles Schwab
👆🏼: this
Yeah man, schwab is the jam
The question you should ask yourself is, if something were to happen to that capital while held in RH, do you have confidence in their support and comms to actually help you when you need it? Personally, I would say no to that Q. Their support channels are non-existent. If you don’t want to be the product, use a reputable brokerage.
Which ones would you recommend?
Any of the more traditional brokerages will be better alternatives than the service RH provides. TD Ameritrade, E Trade, Fidelity etc.
No retirement accounts? Your money isn't secure from the tax man...
I have about 60k in 401k
Roth IRA?
Most brokerages are going to also have 500k SIPC limits. You can spread it out for awhile, but eventually you’re going to have some risk.
What do people with multiple millions do? Where you run out brokerages to spread it out. Just curious
@snowflake, they usually have their money with reputable companies (not Robin Hood ) that allows them to get major benefits from having 8 figures at the firm. A lot of private investments and real estate as well.
Personally I always think it’s better to not put all/majority of money in one account.
Put 100k in Bitcoin and chainlink. Reaming buy a house in Austin tx
This but not chainlink. Just Bitcoin and Austin.
I wouldnt trust robinhood with that big amount.. For that amount i'd rather pay slightly higher with more established broker
Why? They are insured the same way...
Outage
Vanguard is good. Most brokerages don’t charge fees now. Robinhood has had some outages but it’s most likely not a big concern in terms of losing your money. But doesn’t hurt to spread it out as you get to larger amounts.
It's generally poor practice to trade on margin for individual investors so the interest on margin shouldn't be a consideration for >99% of people. Since most brokers have dropped trading fees, there's little reason to use Robinhood unless you really like their app over other apps/brokers/websites. Even then I'd question if Robinhood's known stability issues are worth that ease of use.
Their stability was much better than other brokers during election time
Why don’t use another app like a robo? If you have that much cash try out Titan Invest. They invest like a hedge fund so really well managed companies in the portfolio. My returns have been really great too. Send me a dm if you want to learn more or want discount on fees
I mean, I thought the whole world is moving towards passive investing /ETFs no?
Yeah I would call it passive “aggresive” investing 😅