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Contact us before canceling entire account to continue bill credits to credit, stop and balance and report finance agreements due. Hello and welcome to Money Girl's Quick and Dirty Tips for our richer life. I'm your host, Laura Adams. With the recent shake-up in the financial markets, we've been hearing more about the SIPC or Securities Investor Protection Corporation. In today's episode, I'm going to discuss this system that helps protect United States investors. The SIPC is a nonprofit corporation that was created by Congress in 1970. The SIPC works to return cash, stocks, bonds and other securities to investors within limits when their brokerage firm closes and still owes them money. Some investments are not eligible for SIPC protection. These include investments such as commodity futures and fixed annuity contracts because they're not registered with the Securities and Exchange Commission or SEC. It's important to understand that the SIPC does not work like the FDIC or Federal Deposit Insurance Corporation. If you're unfamiliar with FDIC insurance, it's a topic that I recently discussed. Please go back and listen to shows 85 and 86 if you want more details. The SIPC is very different from the FDIC because it does not ensure invested funds. The SIPC helps investors when their money is stolen or put at risk if their brokerage goes out of business. They don't bail out investors from bad investments. There simply is no guarantee against losses or fraud in the investment marketplace. However, since its creation to December of 2007, the SIPC has helped an estimated 625,000 investors recover $15.7 billion in assets. To do this, they disperse funds from a reserve account of over $1 billion that's funded by member brokers, so only brokerages who are members of the SIPC can offer this protection to their customers. You know you're dealing with an SIPC member broker when you see the words Member Securities Investor Protection Corporation or Member SIPC or the logo on their literature, signs, or website. You can also go to the SIPC website at SIPC.org to search their member database for specific firms. Of course, these links will be in the show notes at moneygirl.quickanddirtytips.com. So what happens in the terrible event that your brokerage firm and money disappear? If the brokerage is put into liquidation, you will receive a claim form from the court appointed trustee. There are strict time limits for filing claims, so be sure to adhere to any deadlines you receive with a bankruptcy notice. September is a great month for planning. We start thinking about the rest of the year, whether it's back to school, big year-end work projects, holiday plans, or travel. Planning ahead is crucial in life, especially when it comes to what happens when you're gone. Getting life insurance may sound daunting, but policy genius makes the process a breeze. With policy genius, you can find insurance policies that start at just $292 a year for a million dollars of coverage. Some options offer same-day approval and avoid unnecessary medical exams. Policy genius's technology lets you compare quotes from America's top insurers in just a few clicks to find your lowest price. It's the country's leading online insurance marketplace. And if you ever need help or guidance, they have an expert license support team to answer your questions, handle all the paperwork, and advocate for you throughout the process. It's never too late to plan ahead. Go to policygenius.com or click the link in the description to get your free life insurance quotes and see how much you can save. That's policygenius.com. It's been a long year. After investing billions to light up our network, T-Mobile is America's largest 5G network. Plus, right now, you can switch, keep your phone, and we'll pay it off up to $800. See how you can save on every plan versus Verizon and AT&T at T-Mobile.com/KeepAndSwitch. Up to four lines via virtual prepaid card. With the Wells Fargo Active Cash Credit Card, you can earn unlimited 2% cash rewards on purchases you want and purchases you need. That means you earn on what you want, like trying out that new workout class, and 2% cash rewards on what you need, like a foam roller for your sore muscles. That's the beauty of the Active Cash Credit Card. It's ready when you are, with unlimited 2% cash rewards. The Wells Fargo Active Cash Credit Card. That's real life ready. Terms apply. Learn more at Wells Fargo.com/activecash. If an SIPC claim form is received after the deadline sent by the bankruptcy court, there is a second deadline you can meet. Federal law allows submission of claim forms for six months from the date of the public bankruptcy notice. However, these late claims won't be processed as quickly and may not result in full reimbursement. If your broker is in trouble, it's possible that your account could be transferred to another brokerage firm before you're even aware there's a problem. In the event of a transfer, it still recommended that you file an SIPC claim form. This can protect your rights in the event of any reporting errors that could occur during the transfer of your money. If a failed brokerage's records are fraudulent or money was transferred inaccurately, you would need to be able to prove the accounting error. So it's a good idea to keep copies of your trade confirmations and the most recent monthly or quarterly account statement. The SIPC goal is to replace the actual securities owned by each customer. They purchase the securities in the open market, so the investments may have increased or decreased in value when they return to each customer. If there isn't enough money in customer accounts to satisfy all claims, the SIPC reserve funds are used to make up the difference. The maximum amount that the SIPC will pay out of reserve per customer is $500,000. This includes a $100,000 maximum for cash claims. Once a claim is received, most customers can expect to get their funds back within one to three months. If fraud is involved in the firm's financial records or deemed to be inaccurate, it may take longer to sort out the bad books. For more details on the SIPC claim process, I'll include a link in the show notes. Be aware that the SIPC does not protect the funds of any customer who is largely affiliated in the ownership of a closed brokerage. This would include general partners, officers, majority owners, or directors, for example. I hope you never have to file a claim, but it's good to know that the SIPC has returned investments to 99% of those eligible for its protection. I have a book to give away to the next person to submit a review of the show in iTunes. Just send an email to money@quickanddirtytips.com with your iTunes username so I can confirm your review. Then I'll send you the informed investor by Frank Armstrong III. His book is a hype-free guide to constructing a sound financial portfolio. I'm glad you're listening. Cha-ching. That's all for now. Courtesy of Money Girl, your guide to a richer life. With the Wells Fargo Active Cash Credit Card, you can earn unlimited 2% cash rewards on purchases you want and purchases you need. That means you earn 2% cash rewards on what you want, like season tickets to watch your favorite team, and 2% cash rewards on what you need, like paying for parking. That's the beauty of the Active Cash Credit Card. It's ready when you are, with unlimited 2% cash rewards. The Wells Fargo Active Cash Credit Card, that's real life ready. Terms apply. Learn more at wellsfargo.com/activecash. H5N1 Bird Flu is spreading in some animals. If you work with poultry, dairy cows, wild animals, or with raw, unpasteurized milk, wear protective gear and take precautions. cdc.gov/birdflu, a message from CDC. [BLANK_AUDIO]