How Regular People Can Protect Their Money
As the crisis on Wall Street continues – even as news crosses that the Fed will come to the rescue of AIG - regular folks around the country are wondering how all of this going to affect their retirements, investments and bank accounts. On Tuesday’s On the Money Special Report, Carmen reiterated the most important thing that everyone should know with regard to what is happening in our financial market: Most of your money is insured. As long as it is in places that are protect, you will be fine.
The FDIC insures bank deposits of up to $100,000 per deposit per bank and IRAs up to $250,000. If your bank is FDIC insured, and most are, you do not have to worry about what will happen to your money if your bank fails, as long as it’s within the $100,000 threshold.
Employee pensions and 401(k) plans are also covered by the Employee Benefit Protection Act. However, the performance of individual stocks is not protected by anything. Bottom line: if you have a checking account at a struggling bank like WaMu, you’re money is safe. If you have stock in WaMu, you might not be so lucky.
Know what you’ve got, where you’ve got it, and you’ll get through this OK.
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