If I have $1000 on deposit at a bank, and the bank fails, then the government / FDIC will step in and make sure that I have my $1000.I was looking at my 401K account and got to thinking... what would happen if there were some scandal and Fidelity announced it was insolvent, such as a bank could if too many loans go bad, or every depositor suddenly wants their money back...I assume there is something equivalent for operations like Fidelity that hold the majority of our citizen's 401Ks? Is that SIPC? Is there a limit to this insurance like FDIC? Or is the model/regulation of 401K operation different from a bank which usually lends out a multiple of its deposits (and hence the reason it could if fail)?I have my employer 401K with Fidelity and also two IRAs. It's convenient to see all the dollars at a single location, but it occurs to me that it might be like eggs in a single basket. I have no choice with the 401K, but I'm wondering if I would be better off moving the IRAs to another brokerage to spread my risk around.
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