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.
Author: Callahan Financial Planning
Callahan Financial Planning is an independent fiduciary financial advisory firm, providing planning on a fee-only basis, without sales commissions, with offices in San Rafael, San Francisco, and Mill Valley in Northern California, in Omaha and Lincoln in Nebraska, and in the Denver metro area in Centennial Colorado.