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Guidance on managing your finances and investments


With the recent collapse of SVB bank, it is important to consider the impact of bank failures and the importance of diversifying your investments. If you have deposits or investments that exceed the FDIC insurance limit of $250,000 per depositor per bank, it may be wise to consider alternative banking options to reduce your exposure to any one institution.


Was your business directly impacted affected by this collapse?


Below are 5 steps you should take now:

  1. Consider diversification of funds: Diversify your funds across different banks or financial institutions to reduce their exposure to any one institution.

  2. Review deposit insurance coverage: Review your deposit insurance coverage and ensure that your deposits are fully insured. The FDIC provides up to $250,000 in insurance coverage per depositor per bank, but this may vary depending on the type of account and the ownership structure.

  3. Consider moving funds: If you have deposits or investments that exceed the FDIC insurance limits, consider moving these funds to another bank or financial institution to protect your assets.

  4. Review contractual agreements: Review any contractual agreements you have with SVB bank and consider the impact of the bank's collapse on these agreements.

  5. Stay informed: Stay informed about developments related to the SVB bank collapse and any regulatory changes that may affect your financial situation.


But what if you were not personally affected by the collapse of SVB bank?


If you have deposits or investments that exceed the FDIC insurance limit of $250,000 per depositor per bank, it may be wise to consider alternative banking options to reduce your exposure to any one institution.


One option is to spread your deposits across different banks or financial institutions to ensure that each deposit is fully insured by the FDIC. Another option is to consider investing in other asset classes, such as stocks, bonds, or real estate, to diversify your portfolio and reduce your overall risk.


It is important to review your deposit insurance coverage and ensure that your deposits are fully insured. The FDIC provides up to $250,000 in insurance coverage per depositor per bank, but this may vary depending on the type of account and the ownership structure.


Now is a great time to reach out to your bankers and CPAs for options that best suits your business needs.


-My Accounting Crew

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