I was wondering if one's money contributed to an IRA could be lost due to any sort of disaster. For example, if the brokerage becomes bankrupt.
2007-12-06 01:40:58 · 3 answers · asked by guy 2 in Business & Finance ➔ Personal Finance
yes if your ira is in the stocks and the stocks really went south!!!
2007-12-10 00:08:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes, it is possible to lose the investment in an IRA.
You could have your IRA in a self-directed account and choose to invest in a single security that goes bust.
Or if your IRA is invested where FDIC or FSLIC does not apply, it is possible that the instution could go bankrupt. Oddly enough if you have IRA with an insurance company it would be better protected against the company's insolvency if it was in a variable fund rather than a fixed fund because the variable funds are held in "separate accounts" while the fixed funds are liabilities of the insurer.
2007-12-06 02:28:04 · answer #2 · answered by frugernity 6 · 0⤊ 0⤋
Not Totally! SIPC regs will insure 100K cash and 400K in positions. If you have more than that, you could lose it!
2007-12-06 01:50:12 · answer #3 · answered by da_zoo_keeper 5 · 0⤊ 0⤋