WASHINGTON, March 30, 2023– An individual or a family’s financial journey requires careful planning and preparation. When four in five Americans describe the state of the economy as not so good or poor, an overwhelming share of Americans aren’t confident their children’s lives will be better than their own, and we see bank failures like what happened with Silicon Valley Bank (SVB), it’s easy for ordinary Americans to let pessimism set in. But at Finseca, or FINancial SECurity for All, our mission is to remind Americans that there are very clear steps you can take to make sure your financial situation is protected regardless of whatever economic volatility we may need to weather at the moment.
For example, there are three clear lessons we can all learn from SVB’s failure that we can apply to our own financial situations:
- Have a plan. Whether you’re a young person just starting out, a seasoned professional with a large family, or something in between, we can learn from SVB’s failure to plan. Ordinary Americans can start by assessing their situation, outlining their risks and financial goals, and putting together a path for long-term financial security.
- Embrace diversification and find ways to protect yourself. Volatility in the economy is a fact of life. Perhaps the biggest takeaway from SVB’s failure is that they didn’t properly diversify their risk. This EY study validates that a holistic financial plan (life insurance, investments, and annuities) is second to none when it comes to protecting yourself and your loved ones.
- Continually revisit your plan. As we saw with SVB, their financial outlook appeared strong until interest rates changed. The same could be true for ordinary Americans – things may look good today, but are you prepared for what may be coming around the corner? Make it a point to revisit your financial security plan regularly. And consider talking to a professional, preferably a Finseca professional, about which options may be best for you and your family. A professional can walk you through your planning and investment options to ensure your path is one headed for long-term success regardless of what the market throws our way.
