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February 16, 2009

SIPC |The Securities Investor Protection Corporation

Your Guide

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Definition

Protection available for investors’ assets held at brokerage firms. SIPC is the first line of defense in the event a brokerage firm fails owing customers cash and securities that are missing from customer accounts.

“Although not every investor is protected by SIPC, no fewer than 99 percent of persons who are eligible get their investments back from SIPC. From its creation by Congress in 1970 through December 2004, SIPC advanced $570 million in order to make possible the recovery of $14.2 billion in assets for an estimated 624,000 investors”.

Referring Cite

http://www.sipc.org

Additional Helpful Information

Many brokerage firms offer protection in excess of the SIPC limit. Individuals should check with their brokerage firms to determine whether their assets are fully protected, and if not when can be done to ensure full protection

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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