Financial Information
Is the current financial crisis a threat to the security of my Individual Retirement Accounts at Fidelity?
Question : Is the current financial crisis a threat to the security of my Individual Retirement Accounts at Fidelity?
How is Fidelity different than Bear Stearns that just collapsed? What kind of exposure, if any, does Fidelity have to mortgage backed securities? If Fidelity were to go bankrupt, what would happen to all the money in my retirement accounts there?
retirement accounts
Best answer:
Answer by srracvuee
someone else would take care of it so as you wouldn’t see it again
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#2 written by A nobody 1 year ago
There is no direct threat to the security of your IRA at Fidelity.
In differs from Bear in that Fidelity is primarily a mutual and as such can not trade proprietory positions other than securities issue by the government,
The only mortgage back securities held by fidelity are those in those funds that, by prospectus, can be held. You would have to check the prospectus of those funds that are permitted to carry such.
If Fidelity were to go bankrupt, the country will have major problems.. The investments of the securities your account would be subject to market risk and not to the capital risk of the firm. Mutual fund companies are entirely different than banks and/or B/D in the manner which customer assets are protected.
If anyone has an investment, and feels uncomfortable holding such an investment should get out of it a invest in something in which they feel comfortable,
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Fidelity is not an investment bank – it is a mutual fund manager and broker. Even if Fidelity, the funds management/brokerage company, went bankrupt, the mutual assets themselves (stocks, bonds, cash) are held in segregated accounts.