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Investment products are not FDIC insured; Accounts over 250k are not FDIC insured; In this case, that's probably the bulk of 'uninsured' - large accounts, or
by abofh 4y ago
Investment products are not FDIC insured; Accounts over 250k are not FDIC insured; In this case, that's probably the bulk of 'uninsured' - large accounts, or creatively sold investment products.
- bombcar 4y agoInvestment products can (and often are) FINRA and SIPC insured - but this is NOT an insurance against loss (FDIC doesn't insure your interest, just the principal which changes each time interest is paid, the moment FDIC steps in your interest-earning can go to zero) - it is insurance that you actually own what the investment says it is. So if you buy stock via Vanguard, and Vanguard mismanages itself into death, you still own the stock and eventually it'll be at another broker.