Getting Personal
Chris Farrell and Tess Vigeland take questions on your protections against an ailing market, from PODs to SIPC, FDIC to NCUA.
Getting Personal (Marketplace)
More on Investing, Housing - Real Estate
Links
- Audio: Getting Personal (Part 2)
Each week on Marketplace Money, host Tess Vigeland looks at the week's major national and international stories that will impact the average listener's wallet. - TreasuryDirect
- SIPC
- FDIC
- NCUA
Comments
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From Norfolk, NE, 10/11/2008
Do you think it is foolish to keep investing each month when your money has gone done $26,000.00 in the last quarter? Is it safe to look on the bright side and think that the future value should increase because you can buy more when the price is down? I know, if only we had a crystal ball.ha.
From Willmar, MN, 10/10/2008
I turned 71 in July. I have to take money out of my IRAs before the end of this year. I have a diversified portfolio of funds. Is it better for me to take out of bond or stock funds? If I reivest some of these funds, what category of fund do you recommend I put that money in to?
From San Mateo, CA, 10/09/2008
I have to say something because I think Chris Farrell gave a piece of misleading, even incorrect, advice. First, he explained that the federal program to protect money market mutual funds, assuming the fund participates in the program, only protects as much as the investor had in the fund on September 19th. Then, in answer to Tess's question, he recommends that people with money in a money market mutual fund that isn't participating in the federal program should move money into one that is. This doesn't make sense to me. It doesn't get you any protection! If you're adding money to a money market mutual fund after September 19th, it's not going to be protected. I don't see the point in moving money from one unprotected fund to a fund that participates in the program but where your money won't be protected either. I think Chris has mislead his audience into thinking if they move their money into a protected fund now, they'll be protected. Perhaps a correction is in order? Love the show! Keep up the good work.
From santa cruz, CA, 10/06/2008
I have heard different stories about how much can be FDIC insured in cash and money market (i.e. CD). Is it $250K per person, per account, per institution?
How about NCUA insured credit union?
I have 50% of my assets in mutual funds and 50% in CD. I work with a group financial advisors whom I trust but in the end I am still not convinced they would advise me to sell if we are heading to a free fall market. Also, I am not sure if my mutual funds are indeed safe. I am really tempted to move more money from mutual funds to CDs for my IRA account.
My age is 46.
thanks,
chinshu
From santa cruz, CA, 10/06/2008
I have heard different stories about how much can be FDIC insured in cash and money market (i.e. CD). Is it $250K per person, per account, per institution?
How about NCUA insured credit union?
I have 50% of my assets in mutual funds and 50% in CD. I work with a group financial advisors whom I trust but in the end I am still not convinced they would advise me to sell if we are heading to a free fall market. Also, I am not sure if my mutual funds are indeed safe. I am really tempted to move more money from mutual funds to CDs for my IRA account.
My age is 46.
thanks,
chinshu
From santa cruz, CA, 10/06/2008
I have heard different stories about how much can be FDIC insured in cash and money market (i.e. CD). Is it $250K per person, per account, per institution?
How about NCUA insured credit union?
I have 50% of my assets in mutual funds and 50% in CD. I work with a group financial advisors whom I trust but in the end I am still not convinced they would advise me to sell if we are heading to a free fall market. Also, I am not sure if my mutual funds are indeed safe. I am really tempted to move more money from mutual funds to CDs for my IRA account.
My age is 46.
thanks,
chinshu
From Salt Lake City, UT, 10/05/2008
I am a college student at the University of Utah and I, like many of my peers, are curious as to what I should be doing considering the economy. Although we are all concerned about student loans for the future we also want to know, "Is this a good time to buy stock, mutual funds, etc.?" I will graduate in the Spring of 2010 with my Masters in Education so I am not concerned about having a job, however I don't want to be kicking myself for not buying into "something" when it was cheap and bound to go up before I retire. What advice do you have for college students and others who are not close to retirement? Should we buy stock and let it sit until it grows or is the risk to high at this point?
Thank you,
Beth Jameson
From Santa Cruz, CA, 10/05/2008
You told your audience that if they couldn't possibly take a chance with their money market money they should go to TreasuryDirect and buy the safest possible instrument.
What about those of us who have money in an IRA moneymarket account as I do at Fidelity. I have 375K in Fidelity Cash Reserves and I certainly cannot spare a dime (no sad pun intended) I am retiring in June 09 at 66.5 yrs of age and that 375K in the money market along with another 226 in Fidelity Inflation Protected Bond fund.
What should someone in Fidelity IRA do? I'm not sure, but I think I cannot simply pull the money and go to Treasury Direct without paying a huge amount in taxes.
Am I wrong or confused?
You should be more consistent and give all advise for those of us (probably the majority of your listeners) who have their money in an IRA as I do.
Thanks in advance,
Johanna Bowen
From Minneapolis, MN, 10/05/2008
Where is the press release on the Government Backstop program that Chris Farrell said he posted on this site?
From Olive Branch, MS, 10/05/2008
I have POA for an 86 year old friend who lives in a nursing home.I have her LAST $69000 in a (so called) "sweep accout" at First TN/First Horizon. $2500 constantly shows in her cking account and Goldman Sachs Funds sweeps her inv money back and forth to maintain that balance. She receives a small monthly pension of $2258 (SS & CSA) Do I need to close out the G & S now or wait? I get chills thinking I might lose the last of her money. In the 8 yrs I've taken care of her in the nursing home, we have gone though $520,000 on nursing homes and meds. Help!! Please advise me. Should I take it out or leave it in?
From New York, NY, 10/05/2008
During your show, when asked how well people were protected by FDIC, you eluded to the fact that aliens were not, which got me worried as a non-us citizen resident. Your statement forced me to research the FDIC site where I found the following in a series of Q&A's:
7. Are deposits with U.S. savings and loan associations by non-U.S. citizens or residents abroad covered by the $100,000 deposit guarantee?
Response--The Federal Deposit Insurance Act does not contain any citizenship or residency requirements with respect to the insurance of deposits in U.S. banks or savings and loan associations. Accordingly, deposits by Dutch citizens or residents in *** would be insured to the same extent and in the same amount as deposits of any U.S. citizen or resident in similar circumstances.
FYI, the link is: http://www.fdic.gov/regulations/laws/rules/4000-5110.html
Regards
From New York, NY, 10/05/2008
Please do you homework and don't exaggerate the risks to the average investor. Your journalism is the least bad example of journalism that causes people to suspect one of the parts of the federal government tha actually works. (Another part is Social Security, though maybe not Medicare, though Medicare is more cost-effective than any private health care plan.)
Your snide remarks about Lehman during the disccussion with the investment advisor on Sunday's show implied that average investors with brokerage accounts at Lehman would have been at risk on shareholdings above the insured limit. I believe that the retail accounts of Bear Sterns, Lehman, and Merril have all be purchased, with the government assistance as needed, by stable and government-protected banks that protected the full account of normal investors, though not of some hedge funds whose derivitive products are clearly excluded by SIPC.
The government has done just what the majority of Americans, and the majority of the smaller group of Americans who hold equities and bonds directly would have done. Back stopping those federal government successes, the SIPC (enabled by Federal Government Statute) provided ADDITIONAL protection these actions has failed.
As far as I know, none of the widely publicized failures of brokerage firms has required any SIPC payments. The existence of the SIPC and the procedures that it has put in place have been enough to make retail brokerage accounts one of the most valuable assets (in terms of the market to book value multiple for the assets) of the failed investment banks.
Please get this right, or, although a big NPR supporter, I will have to report your show on NPR to John Stewart on the daily show to protect NPR's overall high standards of journalism.
Thanks, Ed Resor
From Galena, OH, 10/04/2008
I'm 62 and will hopefully be retiring in 4 years. I am a tenured profesor, have worked for a college for 24 years, and have putting retirement into a Vanguard 403(B)(7) fund. A year or so ago, not being at all willing to face any risk, I put all the retirement into Money Market. And, a few days ago, I rolled it all into an IRA with JP Morgan Chase (also Money Market).
I'm interested in learning about TIPS and its risks/benefits/intricacies.
Thanks,
Maria S. Calderone, DVM
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