What's The Difference Between FDIC and SIPC in Retirement?

Secure Your Retirement

In this episode of the Secure Your Retirement Podcast, Radon and Murs discuss the difference between FDIC (Federal Deposit Insurance Corporation) insurance and SIPC (Securities Investor Protection Corporation) insurance. Both FDIC and SIPC offer protection of funds held in accounts at financial institutions like Charles Schwab or Fidelity.

Listen in to learn about the basics of FDIC insurance, which protects bank deposits, and SIPC insurance, which safeguards investors against the loss of cash and securities. You will also learn about strategies to help you maximize coverage using account titling and diversification.

In this episode, find out:

• FDIC – a federally backed insurance on banks created to restore public confidence in the banking system.
• Understanding the types of accounts and the amount of money FDIC insurance covers.
• SIPC – insurance that protects investors against the loss of cash and securities held by a brokerage firm.
• SIPC insurance doesn’t cover market losses but ensures the return of missing stocks and other securities.
• The differences between bank deposits (covered by FDIC) and investment securities (covered by SIPC).
• The importance of having a diversified investment strategy to balance safety and growth potential.

Tweetable Quotes:

• “FDIC was created to make people feel comfortable with the banking system, knowing that there could be issues, but there are covers that their money is protected”- Murs Tariq.

“Let's think through how to make a financial plan and build an investment strategy around it in various buckets and diversification types of strategies so that we've got good strategies working for us.”- Murs Tariq.

Resources:

If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!

To access the course, simply visit POMWealth.net/podcast.