Thanks for your detailed reply, much appreciated.
On the RH site, it says:You'd want to sign up for Gold first. You'd need to have Gold for a year after the first transfer, and hold the transfer amount + bonus for five years. See terms and conditions for details.Hi, just to clarify (I did read through many of the pages, but still would appreciate a confirmation before pulling the plug):
1) If you rollover a 401k with any amount you get 3% of that as reward/bonus/match whatever? So $1 million 401k rollover would net $30000.https://www.sipc.org/for-investors/what-sipc-protects details what is protected by SIPC.2) SPIC covers the first $500k, but they have supplemental insurance that covers upto $50 million. So if there is any brokerage catastrophe with your shares and holdings disappearing or compromised/hacked/sold without your consent etc, they will restore up to $50 million?
As I understand it, brokerages are required to segregate client assets from operating funds, so even if a brokerage fails, it shouldn't affect your holdings.
I don't think assets lended out using securities lending are covered by SIPC coverage.
I think the $50 million coverage is spread across all client accounts.
I plan to stay under the SIPC limit at Robinhood.
I assume that Robinhood would be worse than other major brokerages against reimbursing for hacked accounts, and would make it difficult to make a claim. (I don't think hacked accounts are covered by SIPC)
So I guess the way to understand this is it that since they only have aggregate up to a billion, then if the losses were so huge that the per customer amount would end up being much less. If there were only a few customers, then it would be ok upto 50 million per customer?We've purchased an additional insurance policy for Robinhood Markets, Inc., Robinhood Financial LLC, and Robinhood Securities, LLC to supplement SIPC protection. The additional insurance becomes available to customers in the event that SIPC limits are exhausted. This additional insurance policy provides protection for securities and cash up to an aggregate of $1 billion, and is limited to a combined return to any customer of $50 million in securities, including $1.9 million in cash. Similar to SIPC protection, this additional insurance does not protect against a loss in the market value of securities.
Ok. Yikes, that's no good thenIt probably depends on the sending custodian. Some use physical checks in the mail, so that type of transfer could take a few weeks.3) Generally, is it taking 3-4 business days for the transfer to complete? But within that, is the amount of time you are off market 3-4 days, or just 1 day? I am trying to think of the risk of missing out on a good market day like today. If it's one day, it's unlikely that there will be a 3% day, but 3-4 days, it could be cumulatively.
Why, are IRAs transferred over differently? And do you mean you set up an IRA where your 401k is, and move within the same institution? That happens fast?
Personally, I'm rolling over 401k funds in smaller chunks to an IRA, and later transferring assets in kind. This should reduce the expected effect of market fluctuations while out of the market.
Not all 401k custodians support partial rollovers.
Note that IRA accounts may offer less protection than 401k accounts against bankruptcy or lawsuits, depending on state law. Funds that can be traced back to a 401(k) account may offer better protection. However, Robinhood only supports one IRA account of each type, so it doesn't appear possible to segregate on an account level.Those ETFs should be available.4) You can buy all etfs like VOO, VXF, VGT etc in robinhood, and there are no excessive transaction fees etc that would render the exercise worthless.
Thanks
Statistics: Posted by workingmanblues — Thu Feb 22, 2024 3:28 pm — Replies 969 — Views 65519