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A weekly review of trends, facts and tips for journalists
- Recent bank failures have many savers nervous. Schwab explains how the FDIC and structuring accounts can help protect assets in the banking system.
- Mark Riepe explains the importance of asset allocation and the first steps toward making sure a portfolio's asset allocation is where it needs to be.
PROTECTING YOUR BANKING ASSETS
Schwab Center for Financial Research
Steering depositors away from panic and instilling public confidence in the banking system were reasons why Congress created the FDIC in 1933 as an independent agency of the United States. The FDIC insures deposits at 8,494 banks and savings associations and is backed by the full faith and credit of the U.S. government. When a bank fails (which has happened 127 times in the past 15 years), depositors can take some comfort in knowing federal law requires the FDIC to make payments as soon as possible.
Based on its previous track record, the FDIC has typically made insured deposits available within a few days after a bank closing. As of March 2008, the FDIC fund was well-funded with assets totaling $53 billion. Therefore, the most important takeaway for bank depositors is to maximize the amount of their balances that fall under the FDIC insurance safety blanket.
Finding out your bank has failed is nerve-wracking, and once it has happened, there's not much you can do after the fact. However, with a little bit of planning beforehand, depositors can greatly increase their insured amounts and significantly reduce their exposure to loss should their banks fail.
Media Contact:
Lara Edge
415-636-3386 or 415-636-5454
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INVESTING PRINCIPLE 5: GET THE MIX RIGHT
Mark Riepe, senior vice president, Schwab Center for Financial Research 
On the surface, asset allocation is a simple concept: it's the process of spreading out one’s portfolio across various asset classes. (By asset classes we mean different types of investments, such as stocks, bonds and cash.) However, upon further inspection, you may begin to feel overwhelmed by the many facets of asset allocation.
To help you make sense of it all, we'll look at three important aspects of asset allocation and what they mean to your portfolio.
Media Contact:
Lara Edge
415-636-3386 or 415-636-5454
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IMPORTANT DISCLOSURES
This information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice or an offer or solicitation to purchase or sell any particular security. It is not intended to be a substitute for specific individualized tax, legal or investment planning advice. The strategies mentioned may not be suitable for everyone. Each investor needs to review investments and strategies in light of his or her own particular situation. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA and/or attorney. Data contained here is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.
All expressions of opinion are subject to change without notice. All research has been compiled from publicly available, proprietary and/or licensed data. Past results are not indicative of future performance.
Charles Schwab & Co., Inc. (Member SIPC) is a subsidiary of The Charles Schwab Corporation. The Schwab Center for Financial Research is a part of Charles Schwab & Co., Inc.
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