Lessons from SVB | Wisdom, Wealth, and Wellness

Jonathan Satovsky
CFP®, ChFC®, CIMA®, CPWA®, CDFA®, DACFP

Good morning, good afternoon, good evening. Depending on the part of the world you’re in. This is Jonathan Satovsky of Satovsky Asset Management and on today’s episode of “Seeking Wisdom, Wealth, and Wellness,” in light of SVB’s bank failure and FDIC takeover, let’s discuss the important reminders of critical lessons for people to think about.

  1. Financial planning is important.
  2. Asset/liability matching is important.
  3. Risk management is important.

 

Let me tackle them in order.

  1. Why is financial planning important? Well, you have to understand what your goals are for an individual and or business.
  2. Asset/liability matching is important because if you don’t have the liquidity to take care of your short-term needs and short-term needs arise, you’re a forced seller of assets.
  3.  Risk management is understanding where your risks sit for psychological safety purposes. So, I, for one, haven’t had a banking account of over $250,000 ever in my whole life. And I would suggest that no one maintains more than $250,000, which is the FDIC limit in a bank account. Why? I can get away in my brokerage account holding at Fidelity a billion dollars, held in a treasury money market account where I’m not subject to the collapse of the institution and my money is liquid. So it’s perplexing to me that individuals and institutions of great sophistication don’t get this.

 

So, I always go back to the concept of, “What can you do to protect yourself from a 100-year flood?” Because it could happen anytime on your path to Wisdom, Wealth, and Wellness. Have a great day.

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Video Recorded March 10, 2023
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Disclosures

This blog post is not intended to be, nor should it be construed or used as, an offer to sell, or a solicitation or offer to buy any securities or interests in any strategy offered by Satovsky Asset Management, LLC (“SAM”). SAM is a registered investment advisor with the Securities and Exchange Commission – for more information see www.adviserinfo.sec.gov. Please remember that different types of investments involve varying degrees of risk, and that past performance is not indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the strategies recommended or undertaken by SAM) will be profitable. Market index information shown herein is included to show relative market performance for the periods indicated and not as standards of comparison. The market volatility, liquidity and other characteristics of SAM’s portfolio composition are materially different from the securities listed on public market indices. Market index information was compiled from sources that SAM believes to be reliable. No representation of guarantee is made hereby with respect of the accuracy or completeness or such data. Opinions are as of date of video and are subject to change. A copy of SAM’s current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request. SAM undertakes no duty to update information presented herein.

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