Insured Accounts

[lannarebirth]

Many of you may hold money or securities in brokerage accounts above insured limits. I do, and it has concerned me.

In the US brokerage accounts are insured for $500,000 in securities and usually $100,000 in cash. Some brokers, like mine, have further policies with LLoyds, but it's still not enough. What i did on Friday afternoon was took 50% long SPY and 50% short Spy position. It's a market neutral position but now insures my account at a higher value.

if anyone else has any better ideas I would be pleased to hear them.

[OriginalPoster]

Many of you may hold money or securities in brokerage accounts above insured limits. I do, and it has concerned me.

In the US brokerage accounts are insured for $500,000 in securities and usually $100,000 in cash. Some brokers, like mine, have further policies with LLoyds, but it's still not enough. What i did on Friday afternoon was took 50% long SPY and 50% short Spy position. It's a market neutral position but now insures my account at a higher value.

if anyone else has any better ideas I would be pleased to hear them.

Why do that instead of putting the money in short term treasuries?

[MattFS218]

Many of you may hold money or securities in brokerage accounts above insured limits. I do, and it has concerned me.

In the US brokerage accounts are insured for $500,000 in securities and usually $100,000 in cash. Some brokers, like mine, have further policies with LLoyds, but it's still not enough. What i did on Friday afternoon was took 50% long SPY and 50% short Spy position. It's a market neutral position but now insures my account at a higher value.

if anyone else has any better ideas I would be pleased to hear them.

Why do that instead of putting the money in short term treasuries?

I tend to agree, going 50% long and 50% short SPY means you're paying the SPY management fee, plus broker transaction costs. I would buy BIL (short term US treasuries ETF), as they are as good as cash and return a yield of about 2% now.

[lannarebirth]

Many of you may hold money or securities in brokerage accounts above insured limits. I do, and it has concerned me.

In the US brokerage accounts are insured for $500,000 in securities and usually $100,000 in cash. Some brokers, like mine, have further policies with LLoyds, but it's still not enough. What i did on Friday afternoon was took 50% long SPY and 50% short Spy position. It's a market neutral position but now insures my account at a higher value.

if anyone else has any better ideas I would be pleased to hear them.

Why do that instead of putting the money in short term treasuries?

I tend to agree, going 50% long and 50% short SPY means you're paying the SPY management fee, plus broker transaction costs. I would buy BIL (short term US treasuries ETF), as they are as good as cash and return a yield of about 2% now.

Because I'm probably going to close each leg at adifferent time. being already in aids my decision making sometimes. ETF fee minimal for a few days. ST treasuries yielding 0% currently so there's asset dpreciation if unwound. But yes, thats another option. Thanks.

[OriginalPoster]

Many of you may hold money or securities in brokerage accounts above insured limits. I do, and it has concerned me.

In the US brokerage accounts are insured for $500,000 in securities and usually $100,000 in cash. Some brokers, like mine, have further policies with LLoyds, but it's still not enough. What i did on Friday afternoon was took 50% long SPY and 50% short Spy position. It's a market neutral position but now insures my account at a higher value.

if anyone else has any better ideas I would be pleased to hear them.

Why do that instead of putting the money in short term treasuries?

I tend to agree, going 50% long and 50% short SPY means you're paying the SPY management fee, plus broker transaction costs. I would buy BIL (short term US treasuries ETF), as they are as good as cash and return a yield of about 2% now.

Because I'm probably going to close each leg at adifferent time. being already in aids my decision making sometimes. ETF fee minimal for a few days. ST treasuries yielding 0% currently so there's asset dpreciation if unwound. But yes, thats another option. Thanks.

VMPXX is still yielding 1.59% but point taken, it's pretty close to zero.