With the recent bank runs and their subsequent failures I looked into FDIC and SIPC a little bit more. While I don’t have enough money in either to be above the limits I do one day hope to.
FIDC insures bank deposits up to 250k.
SIPC insures equities and cash in brokerage up to 500k.
So if you have a 750k or more in assets what do you do? Only keep 250k per bank, ie open savings accounts in multiple different banks. I know SOFI tries to get around this somewhat by using software to hold up 250k in different banks online up to another limit of maybe 2 mil.
But for me I’m more concerned about SIPC. How many retirees have above 500k in a single 401k or brokerage. If you have above 500k in stocks do you have more than one brokerage limiting the total held in each to less than the insured limit?
Does anyone here have that ‘problem’ and how do you handle it?