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Banking Crisis Averted, but What Are Our Protections?

Banking Crisis Averted, but What Are Our Protections?

March 16, 2023

What a week it's been! We're getting lots of questions about FDIC insurance, the SIPC protection program and similar programs offered for insurance and annuity products. 

Here's a quick summary of it all. Please click the link for details:

  • FDIC covers cash deposits.
  • SIPC covers securities, such as stocks, mutual funds and ETFs.
  • NOLHGA is an organization that coordinates each of the 50 states' separate guaranty associations that help protect insurance and annuity savings.

What's important to understand for our clients in particular:

  • All of our advisory accounts are ultimately held in custody by a division of Fidelity, which is a member of SIPC. 
  • For those who own annuities or other insurance products, you are protected by the insurance guaranty association of the state in which you reside. 

At this time, there's no indication that the Silicon Valley Bank debacle will have any major impact on the vast majority of typical families and consumers. It appears that this is impacting a particular industry. Generally speaking, we're staying the course with pre-determined, long-term-focused financial plans. 

Recent events however do provide the impetus for us all to do an important fire drill. That is, to review what we have, what protections are in place, and if our financial plans are updated. 

Should you have any urgent questions, don't hesitate to call or email us. Otherwise, please feel welcome to schedule a review meeting at your convenience HERE.