Can you trust that source?
Here's why I ask
** special note: we are moving from mailchimp to substack. Please let us know if you notice any glitches (and feel free to send any tips!)**
Friends,
I received some press inquiries about the SVB failure over the last week. There were questions about why this happened, whether it could happen to another bank, how FDIC insurance works and if and how regulations were different between smaller banks and larger banks.
I was happy to explain that money is safe up to $250,000 per account type, per depositor and per institution. I was also very comfortable talking about what FDIC insurance does and does not cover.
But I am not an expert on regulation and the investment strategies made by banks that can lead to this kind of failure.
So I told the reporters just that- I don’t know what I don’t know.
Yes, I could research it and try to “figure it out” but when it comes to money issues, I don’t take the “fake it” approach. And while others might throw it into ChatGPT - this is about people’s money and I just don’t take any chances.
I tell you this because it matters who you listen to for information. There are a lot of so-called “experts” out there, including “Finfluencers” who will come up with answers that might be right- or not. Or be close, but a lot can get lost in the nuances.
For example if you have stocks, they are not covered by FDIC insurance- but they are covered by SIPC insurance. But you don’t have protection if they lose value simply because their price goes down in trading. The coverage is just of the actual stock certificate.
I worry that if I don’t have answers, reporters won’t call. But the reaction this week was one of respect for putting up boundaries and being transparent about where my expertise lies as a CERTIFIED FINANCIAL PLANNER professional and long time business journalist, and where it ends.
WPVI ABC Philadelphia’s Nydia Han put together a great explainer piece which included my 2-cents. Take a look and let me know what you think.
We all need a little distraction from the banking worries.
Let’s turn to some stories I enjoyed being part of from Star magazine.
And yes- it is true. Celebrities also need to be financial grownups.
What advice would you give Khloe?
One of the reasons I recently launched my consulting firm, Financial Wellness Strategies, was to help shine a spotlight on the need for more resources to support employees.
Here’s a great read on the growing trend. Let me know what you think and then reach out. My team and I are ready to help.
On the podcast
We are showcasing some of our favorite episodes because we have some big changes coming soon. Take a listen!
