I was researching something else entirely but came across this post on investopedia https://www.investopedia.com/is-betterm ... ted%20cash.
It says:
“ SIPC membership: Betterment provides Securities Investor Protection Corporation (SIPC) insurance, like any investment broker. This insurance covers your portfolio and uninvested cash in case Betterment goes bankrupt. Your portfolio is insured up to $500,000, with up to $250,000 maximum for uninvested cash. But SIPC insurance only reimburses you if Betterment goes bankrupt. It doesn’t cover investment losses.”
Does that mean if your portfolio was over 500K, would it be wise to open an account with another advisor, eg Wealthfront, Schwab, whomever? Only save up to 500k per brokerage?
I’ve never come across that advice before so I’m assuming I’ve misunderstood something fundamental?
It says:
“ SIPC membership: Betterment provides Securities Investor Protection Corporation (SIPC) insurance, like any investment broker. This insurance covers your portfolio and uninvested cash in case Betterment goes bankrupt. Your portfolio is insured up to $500,000, with up to $250,000 maximum for uninvested cash. But SIPC insurance only reimburses you if Betterment goes bankrupt. It doesn’t cover investment losses.”
Does that mean if your portfolio was over 500K, would it be wise to open an account with another advisor, eg Wealthfront, Schwab, whomever? Only save up to 500k per brokerage?
I’ve never come across that advice before so I’m assuming I’ve misunderstood something fundamental?
Statistics: Posted by dougfir — Thu Mar 28, 2024 4:02 am
