To protect yourself from this worst-case scenario:
- Don’t hold more than $250,000 of uninvested cash in your brokerage account. Keep any extra in your bank account until you want to make an investment.
- Split your investments so you have no more than $500,000 of stock in any one brokerage.
Option 3. Open brokerage accounts with the big two (Fidelity and Vanguard) and brokerage accounts owned by “too big to failed” banks (JPM-Chase, BAC, C).