Many of us have our funds in an investment or mutual fund company.
what happens to your money if that company goes bankrupt? How do you know your money is going to be okay?
The good news is that there are rules stating that your money has to be kept separate from the company’s assets.
That way, according to financial analyst Rick Reagan, if bankruptcy occurs, the courts can’t go after your money, because it has been kept elsewhere.
That is the rule, but what happens if the rules aren’t followed? Like with Bernie Madoff.
The good news is that there are protections here too.
Each account has insurance under the government up to $500,000 dollars. If you fall under that, you’re pretty well protected even if fraud was conducted.
More good news. A lot of major companies like TD Ameritrade, Charles Schwab and others carry individual insurances which give you much better protection and have higher limits than the $500,000.
Rick Reagan appears regularly on NewsChannel 9.
If you have a question for Rick, you can send an e-mail to firstname.lastname@example.org