Question for the Money Doctors

Question submitted on Dec 26, 2011.

Question

I have around 250,000 and I was going to invest with Edward Jones but after investigation I will not. I thought about Fidelity but a friend told me these investmant firms arent insured. Would it be okay to just put it in my savings account for a few months untill I can study and do research and make a good decision?

Answer

Currently the FDIC insures bank accounts up to $250,000, so parking the money in a savings account would be a good decision until you make a decision regarding where to invest.  Most broker/dealers have insurance through SIPC, Security Investment Protection Corporation.  When you interview financial advisors, I would suggest that this should be one of the quesitons that you ask.

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