Quote:
Originally Posted by itsanne
I have just been transferred to Schwab from TD Ameritrade as of September 1st. So, no experience with them yet. I will keep roughly 50/50 between them and Fidelity. No institution is big enough not to fail as we have seen in the past.
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True, but in theory, if Vanguard or Fidelity were to go bankrupt, the mutual fund shareholders would not lose money. That is because the shareholders are the actual owners of the stocks and bonds that make up the mutual fund. Vanguard and Fidelity are just managing the assets, they don't own them. Note that this is not true for insurance companies that sell annuities.