As a reminder, the Federal Deposit Insurance Corporation (FDIC) insures up to $100,000 per depositor (not per account, but per individual). The $100,000 amount applies to all depositors of an insured bank, except for owners of certain retirement accounts, which are insured up to $250,000 per owner, per insured bank.
Brokerage accounts are required by the Securities and Exchange Commission (SEC) to be kept separate from a firm’s corporate finances. That means they’re secure, even if the firm goes bankrupt.
Most importantly, don’t panic. There are always going to be bumps in the road, and if you have a stop loss, it will protect you in times like these. Keep your emotions out of the equation.
It’s also important to note that the media tends to move in a pack, and many of them are going to say “we don’t know if this is going to get a lot worse.” But it could get a lot better, too. If you’ve been following our strategy and set stop losses, then you probably aren’t feeling much pain.
If you’ve been holding on to your portfolio, pay attention to the financials, as there may be exposure to further declines.