Dolan Straight Talk Tip: Don't ever do business with a brokerage firm that is not a member of SIPC. Before you open any account with a broker, make sure you verify that it is a member.

Each account is treated as a separate entity, so if you have multiple investment accounts (IRAs, individual accounts, joint accounts, custodial accounts, etc.) with a broker, you receive the full protection for each account.

Follow These Steps If Your Broker Fails

If your brokerage becomes a casualty of the current financial crisis, we recommend that you take the following steps to make sure you get back everything that's yours:

1. Verify that your broker is an SIPC member (see above).
2. Contact your broker immediately. Expect him or her to be very busy with everyone else calling or e-mailing as well, so you will need to be both patient and persistent.
3. Check all correspondence and statements very carefully. If there is an error anywhere in the process of returning your money and investments to you, you want to catch it and correct it as soon as possible. Make sure you challenge any errors in writing, which brings us to the next step…
4. Keep detailed records of all phone calls, correspondence, transactions and any dealings you have with your broker.
5. And, finally, if you have trouble getting your hands on your cash and investments, contact the SIPC right away. Visit their website or call them at 202-371-8300.

Above all, try to relax. You will likely experience frustration along the way, but if you follow these steps and your brokerage is law abiding, chances are you will get back everything you own.

For more on how to protect your money, check out these links:

• What the Fannie and Freddie Takeover Really Means
• Is Your Bank Safe?
• What to do if Your Bank Fails

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