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1

If you add or subtract a fixed number to the all of the portfolio returns and regress them against the market returns, you will get the same alpha value as before shocked the portfolio returns.


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(Short term -- less than a year or two -- money should be in savings account.) The purpose of keeping the money in a conservative portfolio is so that you don't have to sell low. Here's an example: $25K is 31.25% of the $80K in your investment accounts. If the market drops 50% like it did 12 years ago, you'd have $40K remaining. $25K is 62.5% of $40K. ...


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TL;DR: you have nothing to worry about. The risks that you described are nothing to be worried about with TDAmeritrade, Fidelity, Schwab, Merrill, eTrade and similar large brokerage firms. First, the transfer agent for a company is the official record of ownership. The transfer agent has a record that says you own "50 shares IBM" held in 'street name' at ...


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SIPC coverage ($250k cash, $250k securities) comes into play when a broker shuts down and if customer assets are missing due to theft, unauthorized trading, and other fraudulent activities. It guarantees the custody function of the broker of your assets but not their value (market risk). Some brokers carry additional insurance so your risk first risk ...


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