64: What is Money Insurance?

Take Back Retirement

Given the recent headlines and failure of two banks, Stephanie and Kevin felt is was time for a high-level overview on the government insurance programs that serve as backstops by protecting you from the potential failure of financial services companies.

Listen in as they break down the most important acronyms within the alphabet soup of federal government agencies.

They discuss the FDIC insurance program, how the SIPC protects investors should a firm go belly-up, why pensioners (and pensioners-to-be) need to familiarize themselves with the PBGC, and how to go about the best state insurance program for your goals!

Key Topics:

• What is the FDIC? (4:16)
• Limits on FDIC coverage (8:21)
• Defining “ownership category” (10:48)
• “What can I do to have more protection on my money?” (14:43)
• What is the SIPC? (16:32)
• Defining “custodian” (19:15)
• What the SIPC protect you from (and what it does not) (21:20)
• Defining “separate capacity” (24:28)
• What is the PBGC? (25:52)
• State insurance programs (27:00)
• Our closing thoughts (27:53)

Resources:

• Take Back Retirement Episode 29: How Much Cash Should I Have and Where Should I Be Putting It?
• Here’s a comprehensive description of FDIC deposit insurance coverage for the most common account ownership categories: www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits
• SIPC website for more details: https://www.sipc.org/ - see the “For Investors” section

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You can find the transcript and more information about this episode at www.takebackretirement.com.

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