How safe is my money managed by Callahan Financial Planning?

Callahan Financial Planning is not a bank or brokerage, and therefore does not ever take custody of our clients’ funds. Instead, for those clients whose assets we manage in an ongoing manner, they are held safely with the independent financial institution (“custodian”) you choose.

Clients of brokerage companies generally receive Securities Investors Protection Corporation (SIPC) coverage of up to $500,000 should the brokerage fail or be the victim of fraud. Additional coverage can be available through private insurers, depending on the custodian you choose. Additionally, if your account has any cash deposits, you’re protected by Federal Deposit Insurance Corporation (FDIC) coverage of up to $250,000. There are specific requirements that must be met at all banks and brokerages to ensure full coverage, so it’s important that you work closely with your financial planner to ensure you qualify.

You can visit the FDIC or SIPC directly for more information.

Where is my account held if Callahan Financial Planning manages it?

Clients of our investment management services select the investment brokerage (“custodian”) of their choice. This ensures full transparency and independence to our clients while allowing us to make the ongoing trades necessary for investment management. The two most common brokerage custodians our client’s utilize are TD Ameritrade Institutional and Charles Schwab. Assets held at TD Ameritrade and Charles Schwab are SIPC insured, and cash deposits are FDIC insured up to their respective maximum federal limits.

Callahan Financial Planning Company does not receive any compensation for recommending one custodian over another, and will help you select the one most appropriate for your situation.

For those clients who are prohibited or it’s in their best interest to hold their investment assets at another custodian, special accommodations can be made with most financial institutions in the United States.