Brokerage Firm - Question 27

What are the pros and cons of placing my securities in a brokerage firm's vault versus keeping them in my safe deposit box?

Many people are reluctant to out securities in a brokerage firm’s vault. By leaving them in their own safe deposit boxes, they feel they're safer and under their own control. Unfortunately, many securities are misplaced this way. And if you ever lose a stock certificate or a bond, it is a problem to replace it. Also, if you become incapacitated, ill, or die, then access to the securities in the safe deposit box may become very difficult - or even denied - in certain states.

Securities placed in a brokerage firm's vault are insured by SIPC (Securities Investor Protection Corporation) for up to $500,000. Some firms also carry additional insurance for their clients’ accounts.

Securities held at a brokerage firm are probably safer and easier to track than securities held in a safe deposit box.

Many retirees are not enjoying their retirements because they are spending 2-3 or more hours daily managing their investments. Much unnecessary paperwork could easily be computerized and done more accurately by a brokerage firm.