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.
- Financial planning is important.
- Asset/liability matching is important.
- Risk management is important.
Let me tackle them in order.
- Why is financial planning important? Well, you have to understand what your goals are for an individual and or business.
- 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.
- 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.
