The Impact of an Unstable Bank Industry on Your Retirement

The Impact of an Unstable Bank Industry on Your Retirement Bulman Wealth

In the past few months, three significant banking failures have occurred: Silicon Valley Bank (SBV), Signature Bank, and First Republic Bank.[1] This has generally resulted in concerns about a looming major recession. Numerous bank failures also initiated the 2008 financial crisis, causing experts to closely monitor the current market. The primary worry is that faith in banks will decline, leading to further bank collapses. However, it’s crucial to note that there are now more regulations and safeguards in place than during that time.[2]

What’s the Situation with Regional Banks?

Additionally, problems have arisen with smaller local banks starting to experience stress as other more prominent banks have collapsed.[3] California-based PacWest Bancorp and Western Alliance Bancorp are among the smaller banks encountering challenges after SBV’s downfall. Other regional banks like Comerica and KeyCorp are also beginning to face difficulties.[4]

Banking Insurance is Key

A crucial point to remember is that if your bank has FDIC insurance and your account holds $250,000 or less, your deposits are safe and guaranteed by the government.[5] The same conditions apply for credit unions with NCUSIF insurance: as long as your account has $250,000 or less, your deposits are protected and insured.[6] In the event of your bank or credit union’s failure, provided they are FDIC or NCUSIF insured, you would still receive your money back.

Preparing for the Effects of Banking Turmoil

If you are wondering if your retirement plans will be affected by the recent banking collapses—whether in the form of portfolio volatility or a regional bank failure—you can take measures to diversify your holdings and check to make sure your bank is insured. Taking extra care of your financial plan is crucial and often best guided by professional financial support. This can be done by contacting your local branch or verifying their website for FDIC or NCUSIF insurance coverage.

How Will Your Retirement Stay Protected?

Moreover, if you’re worried about the impact of market fluctuations on your retirement, consulting a financial advisor can be highly beneficial. They can assist you in designing a retirement portfolio that considers economic instability and implements more protective approaches. If you’d like to discuss your unique circumstances, feel free to Click HERE to contact our advisors at Bulman Wealth Group for a free evaluation of your financial situation.


All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or an indication of future results.

Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment advisory services are offered through Chris Bulman Inc dba Bulman Wealth Group, an SEC Registered Investment Advisor. Insurance products and services are offered through Chris Bulman, Inc. dba BWG Insurance Agency and Ameritas Life Insurance Corp., CA State Insurance License # 0M46922. Being registered as an investment advisor does not imply a certain level of skill or training.

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