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Old 03-13-2009, 11:05 AM   #1
hol4
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Join Date: Jan 2009
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SEP-IRA not FDIC insured
I've created a new SEP-IRA account at Fidelity. What they told me is that the money is only insured if tied to CD's, not mutual funds or stocks. I knew of the latter part, but found it unfortunate that my money is not insured even if just parked in their default account prior to investing (a money market).

Does anyone know of any institutions that insures a SEP-IRA, without it having to be locked into CD's?
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Old 03-13-2009, 12:07 PM   #2
pricespector
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Quote:
Originally Posted by hol4
Does anyone know of any institutions that insures a SEP-IRA, without it having to be locked into CD's?
Whether an account is FDIC insured or not is not something that Fidelity decides. In other words, no matter where you go with your account, the same types of things will FDIC insured/uninsured. If your SEP is a brokerage account with Fidelity, you could buy CDs in your IRA or ask them if they have an institutional "deposit" account available within your IRA.

Otherwise, even though they are not FDIC insured, Money Market funds have historically been very safe with the lower returns to match the risk. Fidelity's Cash Reserve hasn't lost a penny through this whole downturn and has actually shown a nice return for conservative money.

You may also consider parking your funds in the Government Bond fund. The underlying investment (Gov't securities) have been returning over 5% annually and the actually made nice gains throughout this entire downturn.
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Old 06-05-2009, 12:27 PM   #3
kbesada
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I think that the link below better answers the question.

While you are not protected from your gains or losses in speculative trading of any sort, SIPC will cover your brokerage funds as outlined. It is the FDIC equivalent for investment accounts. Insurance and credit union products have their own equivalents as well.

http://www.sipc.org/how/brochure.cfm

Kenneth Besada
Associate Financial Planner
Mogul Wealth Management, Inc.
Ken.besada@gmail.com
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