Investing - Theory, News & General • Re: Is custodian diversification worth it? (90/20 Portfolio, Excess SIPC, & Sweep Yields)

I'm still convinced that for these .001% chance safety concerns, rather than multiple custodians, you are best suited by:

• Make sure you are using a cash account, not a margin account. This isn't an issue at Vanguard, but fintechs (Robinhood) may default users to margin who do not understand that.

• Reject the "fully paid securities lending" program if offered--you give up SIPC on those assets.

• It makes no sense to worry about SIPC if you haven't taken all measures to harden your account first. Increase your password to 12 characters, preferably more. Stop using your browser's built-in "remember password" feature if you don't want to type the password and use a password manager that uses a master password to encrypt the stored passwords. Switch from SMS/phone call two-factor to a more secure option--see various threads. Opt out of outgoing ACATS transfers (Vanguard added it this year, after Fidelity had such a feature first)

Statistics: Posted by Makefile — Tue Sep 29, 2026 5:09 pm