Talk of The Villages Florida - Anybody concerned about the security of their bank/brokerage accounts?

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Ask Schwab about their intelligent portfolio which was fined for false adverting about the intelligent portfolio product.
I have Schwab also and I am not happy with what going on with them .

If your bank doesn't have the ability to send text and or email alerts the instant there is a transaction on your bank or credit card account then find another one.

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Originally Posted by manaboutown (Post 2201253)

I received a phone call from my stock bookie at Schwab a couple days ago. He asked me if I was concerned about Schwab Bank, went on to point out about how large it was and so on. He told me he was calling all his clients. Then he asked me if I had any questions. I said not really and told him that I had a general understanding of why SVB was in trouble; it invested long at low interests rates and now was forced to borrow short at higher interest rates. As he seemed nervous I asked him if he was doing damage control. He did not take that question well. After a more or less inconsequential and somewhat strained affable conversation about the weather and such we ended the call.

Then, I got on the internet and discovered Schwab was taking some heat and its stock was down. Turned out Schwab had also gone long on low interest bond investments, was in a pickle to some extent and was assuring folks they had what it took to cover the bases.

Very interesting...

Silicon Valley Bank failed because it didn’t have enough cash on hand to pay off a lot of people with big accounts who tried to pull their money at once. It was a lot like the famous run on the bank in “It’s a Wonderful Life,” but of course much bigger. If the people hadn’t panicked, little or no money would have been lost.

There is a simple solution: Pass legislation allowing banks to suspend payments to those requesting withdrawals by up to 30 days if necessary, perhaps with the bank paying a late-payment penalty. After all, if I bounce a check or fail to make a payment to my credit card bank, they aren’t going to throw me into bankruptcy. We should extend the same grace to banks. It would make our money safer. This money wasn’t pulled from SVB because it was needed, but only to keep from losing it. A grace period would have rescued all the creditors.

Quote:

Originally Posted by Caymus (Post 2201313)

Many politicians have accounts with Schwab and other firms. They will be protected.

Many politicians had stock portfolios just before Covid hit. And then like magic, they were empty.

Schwab does have a sweep account too. I called years ago asking about my money sitting in accounts and not invested since I was going to get out of the market. They told me how they have insurance beyond having fdic insurance. What Schwab told me assured me about how they handle the safety for your money.
For added security on your accounts, make sure you use 2 factor authentication for all your access, freeze your credit, and I even call Schwab to lock my accounts if I’m going on a cruise for example, so no access to any of my accounts can be touched.

I'm more concerned with the anti-business environment out government fosters. Schwab accounts are FDIC, and SPIC and also covered under Loyds of London. Your CD's are covered by the individual issuing banks FDIC insurance. Your investments in stock and funds are still invested. The only concern would be cash in excess of the FDIC amounts with schwab

Access Denied

Charles Schwab’s Insurance Policy For Accounts Exceeding $500,000 | The Conservative Income Investor

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Originally Posted by La lamy (Post 2201357)

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Because the OP wants to warn us about the situation he's facing! I'd be more concerned about people who criticizes situations/people they are not attuned to!!!

Please feel free to explain to me what the situation is the OP is facing.

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Originally Posted by ithos (Post 2201428)

If your bank doesn't have the ability to send text and or email alerts the instant there is a transaction on your bank or credit card account then find another one.

👍👍👍 SMS or Email alerts provide instant notification of a transaction allowing you to quickly identify suspicious activity.

In addition to email alerts, look for a bank that allows you to temporarily “lock down” your accounts and credit cards. My brokerage accounts are always “locked down”. No outgoing transfers of any kind are allowed while locked down. If I want to make a transfer, I unlock the account, make the transfer then relock the account. The whole process only takes a couple of minutes.

Quote:

Originally Posted by mikemalloy (Post 2201442)

Many politicians had stock portfolios just before Covid hit. And then like magic, they were empty.

Please provide a link to empty stock portfolios.

In "real" life, the market sold off for a few months but recovered as soon as the vaccines were developed.

Use only a FDIC insured bank.

Keep your total deposits less than $250,000.

If you need to use two banks, or even three, do so. I can’t think of a bank in The Villages that’s not FDIC insured.

Do those things and you have nothing to worry about other than your own investment decisions.

Quote:

Originally Posted by ithos (Post 2201428)

If your bank doesn't have the ability to send text and or email alerts the instant there is a transaction on your bank or credit card account then find another one.

I agree. That is why I closed my VISA credit card account at the PenFed credit union.

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Originally Posted by Plinker (Post 2201289)

I believe there are more shoes to drop. I just purchased two, non-callable CD’S from my Vanguard account. I required two in order for each to be under the $250K FDIC limit of coverage.
Why take a chance? I opted for a 3-year term at 5%.
As Ron Popeil said: “Set it and forget it”. Due diligence is required and I do find it disgusting that the perpetrators of poor management often get a free pass.

US Treasury I-Bonds are paying 6.89%. 1 quarter interest penalty if redeemed at one year, no penalty if held for two years.
Zero risk.

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Originally Posted by Villages Kahuna (Post 2201499)

Smart thinking. A woman I worked with back in the 70s got an extra two percent on her CDs at an uninsured bank in Kansas. They went belly up in ‘77, she lost all her savings.

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Originally Posted by nn0wheremann (Post 2201514)

US Treasury I-Bonds are paying 6.89%. 1 quarter interest penalty if redeemed at one year, no penalty if held for two years.
Zero risk.

Absolutely! I purchased $20K when rate was 9.6% in June, 2022 and another $20K the first week of January, 2023 ($10K each, spouse and myself). This was low-hanging fruit that I pounced on. For those with financial advisors, if they didn’t tell you to make these purchases you need to ask why. Perhaps because they didn’t want to diminish their AUM income?