Here is how I manage my accounts, but my strategy may be flawed: As a retiree, I set up multiple accounts at the same firm, keeping each one under the $500,000 SIPC limit.

The SIPC does not cover investment losses caused by market declines. It also doesn’t cover losses resulting from hacked accounts unless the hacking results in the brokerage going bankrupt.

The SIPC protects customers against losses of cash, stocks and bonds up to $500,000 (including a $250,000 cash limit) from a brokerage firm that fails - if that firm is a member of the SIPC, which ...