WHAT HAPPENS IF YOUR BROKAGE GOES BROKE

Now there is something called a “Black Swan”, it's an unpredictable event taking place. It's very rare and it may never happen but it also may happen.

😎Call Me😎: https://bit.ly/30IBr0i

😎Second Channel😎: https://bit.ly/3c4sVPS

💲1 on 1 Talk + My Budget + Stock Investments💲
https://www.patreon.com/tommybryson

💰MY M1 FINANCE PORTFOLIO💰 PLUS $10
Link: https://m1.finance/fQsrul1PZcHM

1. Brokers Can go Bankrupt ( during financial Problems )
- And they some have gone bankrupt in the past

For example:
- But also in early 1960 before the SIPC was in place, people had to court and literally spend money to get their money back ( don’t worry things are a lot more different today )
- Drexel Burnham Lambert in 1990 ( the SIPC works with them to transfer assets to another brokerage that is also protected by them in a smooth fashion)
- 2008 few brokers and banks went bankrupt ( because of the entire supreme mortgage problem we had)
- Bear Stearns was about to collapse and found a buyer ( which was chase ) 2008

2. However though what would happen in 2021 or most likely whenever you're watching this video ( because I doubt it's going to change )
- Well the most important thing is that the company is insured under SIPC ( security investor protection act)
- Which is like an insurance company for brokers that is regulated
- And also means that brokers have to follow is SEC guidelines

Here is How this Protects you:
- The SIPC protects up to 500k in securities and cash ( only 250k worth of cash though ) – and if the broker goes bankrupt, you file a claim and you are protected
- And remember also this individual to brokers, so if you want to spread between a few brokers you can if you want to

But Here an Example:
- let's Say a broker goes bankrupt or going to go under
- There are two solutions ( solution a is fast ) – Solution B is slow
- Solution A is they get bought out and they just transfer your assets to another brokerage
- Solution B is they don’t get bought out and now they have Self Liquidate and now you have to file a claim ( and it could take months to get your money back )

Timeline: https://www.sipc.org/cases-and-claims/how-the-claims-process-works

3. Now How to Stay protected
- Make sure your broker is a part of the SIPC
- Keep a record of your Monthly Statement to prove ownership
- And ask if they have additional insurance

Why:
- Because in order to be a part of SIPC ( they are required by law to keep customer money and assets separate from there )
- So potentially even if you have over 500k you might be able to retrieve it unless the companies also have weak records and so on

Ps. Bitcoin and cryptocurrency are usually not protected on SIPC so keep that in mind

4. What I do
- M1 Finance ( spend account with FDIC insurance up to 250k)
- And also SIPC insurance up to $500k
- And they have additional insurance ( rumor is up to 2m I don’t trust it so I’ll be calling in and asking directly )

* PRO TIP*
INFORMATION IS EVERYTHING

👕Merch👕
https://teespring.com/stores/tommybryson

✅2 FREE AUDIOBOOKS✅
https://amzn.to/2Enayo8¬¬¬

💰M1 FINANCE $10💰
Link: https://m1.finance/fQsrul1PZcHM

🎁ACORN FREE $5🎁
Link: https://acorns.com/invite/38EYSU

⚡FREE KINDLE UNLIMITED⚡ (traditional reading)
Link: https://amzn.to/2VGbxt9

👨🏽‍💻DISCORD PRIVATE GROUP👨🏽‍💻
https://discord.gg/EcZEHpA

My Camera Gear: https://www.amazon.com/shop/tommybryson

✔ Help Us Reach 500,000 Subscribers: https://goo.gl/0wvm6w

😎All My Social Media😎
Link: https://linktr.ee/tommybryson

*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

Видео WHAT HAPPENS IF YOUR BROKAGE GOES BROKE канала TommyBryson