How Much Protection Does SIPC Really Provide?

Welcome to another edition of Finance University, where we explore all things finance with the goal of helping you understand and be educated about financial and economic topics.

Today Paul helps us understand what protection SIPC really offers to investors. The limit is $500,000 for assets and $250,000 for cash per account.

This offers some additional protections if multiple accounts are involved but Paul discusses that there are some details that matter, so be sure to pay attention to those if this is of interest to you.

Further, everything is only as good as the SIPC fund as compared against the potential losses. Everyone has to make their own assessment of that ratio. For my part, I am convinced that Congress would be nearly unable to provide the necessary bail-out funds should the SIPC be overwhelmed, but your assessment may be different.

As always, we hope you enjoy the show!


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This is a companion discussion topic for the original entry at https://peakprosperity.com/how-much-protection-does-sipc-really-provide/

Old Fashion Justice

The dragging leaders into the street scenario is way overdue.

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Optimism

You two are too optimistic for me, so you do you and I’ll do me. Today I got 37% of my IRA out of Charles Schwab and I’ll get the rest out the first week of January. I rolled that IRA into a TD Ameritrade account managed by New Horizons in August 2019. TD was recently bought out by Schwab which set off my alarm bells. (The Great Taking hypothesis added on top of everything else has me up to DEFCON 1 today. You guys seem to be at DEFCON 3. Good luck with that.) In the 4.25 years since then my account at TD/Schwab has grown by 6%. However, if I had simply bought physical gold it would’ve appreciated by 27%: $1,520 to $2,090 today!! I’m a slow learner when it comes to math and money but I am learning when to hold ‘em, when to fold’em, when to walk away, and when to run. I’m running.
https://www.youtube.com/watch?v=7hx4gdlfamo

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Quordle

You must complete four wordle puzzles at the same time. In Wordle, you must go insane four times in order to solve a Quordle.

Really The Politicians Care?

Paul i am rather skeptical that writing politicians matters - i do not count the votes.
I write from time to time and used to more but the evil and corruption is so massive and deep that the idea we have 2 parties is gone - it is an uni-party.
my proof - just look at what is happening.
rick

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On The Other Hand

I am right on board with @chris and @paul the idea that we prepare to get assets (skills , community , etc.) to the other side. I am blessed to have the common sense to see (hear/read) something is wrong that requires action (prep) so I can be a blessing to others on the other side.

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Why The Great Taking Didn’t Begin With Svb

I believe the SVB failure was engineered. There were one or more “whale depositors” that had billion dollar accounts ($13B in 10 accounts), mostly resulting from the Fed’s going direct program. They withdrew those accounts at a signal, possibly given by Peter Thiel. Naturally, SVB couldn’t cover the withdrawals. But the SVB customers were covered by the government because, in the terminology of the Great Taking, they were members of the “protected class”. See John Titus videos for details.

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plus physical in appropriate forms are not trackable with no 1099 for taxes but be sure to report all your gains !! you do not want to pocket that gain with no taxes.

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It does not matter, of course. If I expend any energy at all in such endeavors, it is only at the most local level.

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Please

Chris, many of us have been following you for months and/or years (for me, since the emergence of this lovely “virus” in February 2020), but we live working lives and cannot possibly be on the ever cutting edge of this tumultuous age. For us, pease sum up a simple action plan for regular types at the end of such videos. I’m no slouch, but people like Kiker can’t spend time on people with under a half million in wealth.

Good news, Paul works with accounts of $100k and up. Due to high demand, we may have to bump that limit up in the future so that Paul can grow his operations carefully and coherently.
My #1 care is top-notch customer service and attention, which Paul’s firm shares.
People need and deserve an advisor who both listens and shares their outlook on the world.

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Cheap Silver

I have spent the last two tears acquiring silver… artificial price suppression. I would like to buy mine shares in Thorium, Uranium… there is no way we can continue modern life without it, unless we really do have a massive die off from the Covid gene therapy and other issues.

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I spoke with Paul Kiker on Friday morning. I only have about 100k in my IRA, and that is not an issue. I am so thankful to have Bern connected with him through peak prosperity/financial. :heart:

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You Expect Anything But Gaslighting From Politicians??

Perhaps you guys are more affluent and connected than most of the PP members. The polls have been showing politicians votes consistently follow the orders of the donor class, ignoring the obvious wished of their constituents.
I suggest you might be a bit hesitant about telling these corrupt sociopaths about the things that concern main street and issues you are trying to bring to public awareness. Do you really want to give them your game plan? I don’t want to set myself up as a target for their cancel culture thugs.
PP folks - do you have a politician that you believe is representing his constituents? If so, on which issues?

starving and freezing in the dark is a possible outcome.

Here you go again, catering ONLY to the most affluent. This is starting to get old. How, again do I distinguish you from Davos? Both money obsessed and catering to the affluent??
Is it just that you’re supporting the 1% against the 0.1%. What about main street?

Corruption has reached the local.

Barbara, here you go again making your issue mine. Or trying to. If you so dislike the fact that there are fiat currency imbalances across the population, then please let us know when you have distributed all of yours equally among the world and I’ll help you spread your message and tactics. You know, in case you can inspire others to follow along.
It really shouldn’t be a news flash to you that people who can benefit from accessing a wealth manager might have more wealth than a less wealthy person.
And, if you consider $100K to be the dividing line for being in the 1% then your data needs some updating:
https://peakprosperity.com/wp-content/uploads/2023/12/Net-worth-100k-1701695599.7248.jpg
“There you go again, Chris, representing the 38%!”
Not quite as catchy, but maybe with enough repetition and volume it might become a thing?
Meanwhile, Barbara, I am constantly recommending things that “Main Street” might do - by which I presume you mean “has no money to spend” - such as learning skills, making deeper local connections, and planting a garden. And, no, I have no secret kickbacks from “big non-GMO seed.”
Some people need help with managing their money. My team and I work hard to help them find a solution.
Some people cannot plant a garden, yet I will talk about doing that because other people can.
Ditto for every single form of capital. The argument that some people cannot as readily participate in any one form of capital building is not an argument against helping those who can.
At least not in a free-market country built out of free people each with different abilities, needs, drives, success, and, yes, luck.
Life isn’t always fair. Your insistence that I make it fair for everyone, somehow, is not a credible stance.

I am a consultant essentially, like Paul, and I CAN’T serve my clients whose project budgets are too small. I would give them terrible service to try and make a profit on the project. That’s why good consultants can’t over-extend themselves and we have to have a standard by which we manage our client load.

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Barbara, the donor class are their constituents. If you do not have the financial resources to buy political influence then you are irrelevant, a pitchfork waving troglodyte in the street.