Center Valley, PA 18034
We wanted to take a moment to provide you with some resources and perspective on the big news that arrived Friday in the financial world.
Last week, SVB Financial (SIVB) made headlines due to its significant share price collapse. The bank, also known as Silicon Valley Bank, attempted to raise capital to compensate for losses in its Treasuries-heavy investment portfolio, but reports suggest that these efforts were unsuccessful, and the bank will have to sell itself.
Meanwhile, late Sunday, regulators closed Signature Bank, an FDIC-insured New York state commercial bank. The institution fell victim to excess crypto-related deposits and was also experiencing material deposit outflows.
However, it’s important to know that the collapse of SIVB & SBNY is unlikely to be systemic, as the bank’s unique focus on emerging tech companies & Cryptocurrency and its high % of customer Deposits over FDIC, differentiates it from traditional banks. Further, the Fed has stepped in and said that they would make whole all depositors of these two banks and unveiled a new program to ensure banks can meet the needs of all their depositors, called the Bank Term Funding Program.
At this time, we do not believe the SVB and SBNY bank failures are a deeper sign of things to come. However, we are paying close attention to ongoing developments in the banking sector and in other industries for hints of any widespread contagion.
If you are interested in a deeper understanding of these bank collapses and what caused them, LPL provided a great in-depth article here that goes into further detail: Dissecting Recent Bank Failures | LPL Financial Research (lplresearch.com)
As always, feel free to reach out with any questions you may have.
Estate planning focuses on three key areas: Documenting your wishes, Stewardship Goals and Tax Efficiency.
At Capital Planning, our experts can work with an attorney to help you document your wishes and protect your family. We can guide you on the benefits of a Will, Power of Attorney, Advanced Health Care Directives (Living Wills) and Trusts.
Stewardship planning can help you protect your heirs from potential risks such as creditors, divorce, or poor money management skills. Stewardship can also help you meet your goals for charitable giving and life’s passions.
Tax efficiency planning can save your family upwards of 50%+ in taxes when combining estate tax, inheritance tax, and capital gains tax planning strategies.
If you would value advice on any of the above, book a discovery meeting today and speak with one of our advisors about independent financial planning with purpose, so you can focus on enjoying life.
Many people are curious to understand the potential tax benefits available to them. Questions such as “Is a 529 plan right for me and my goals?” are common, and at Capital Planning, we’ll be happy to guide you on this and any other questions you have.
We can work with you to conduct an analysis of funding needs, and provide recommendations as to investment allocation, ultimately helping you to select the right investments for your goals.
Book a discovery meeting today and speak with one of our advisors about independent financial planning with purpose, so you can focus on enjoying life.