March 1, 2023
Some banks recently faced challenges, which you might be aware of. A few medium-sized banks catering mostly to wealthy investors, hedge fund managers, crypto enthusiasts, start-up companies, and affluent individuals experienced issues with their bond portfolios. These portfolios took a hit due to the recent aggressive rate increases by the Fed. As a result, when some significant depositors wanted to withdraw their money, the banks couldn’t provide the funds, leading the government to step in.
This situation underscores the importance of diversifying your investments and not relying solely on banks. It’s crucial to have your money in various places, such as multiple banks, insurance companies, fixed and fixed index annuities, gold/silver, real estate, rentals, small businesses, collectibles, and the market itself.
Remember, banks don’t have a lot of physical cash on hand; most of it is digital. If many people went to the same bank requesting substantial amounts of their own money, the bank might not be able to provide it. Hence, it’s essential to work with a Certified Financial Planner Professional™ and Investment Fiduciary, especially in these uncertain times.
P.S. After tax season, remember that I offer a $90 full tax preparation service for clients with investments in my managed stock and bond portfolios. It’s beneficial to have your CFP™ in sync with your CPA.
Social Security income is subject to taxation, but the tax burden isn’t a straightforward gross income tax. Several unique factors determine your tax rate and overall tax liability:
Until next month, Wayne
Enjoy the simple delight of roasted Brussels sprouts enhanced with balsamic vinegar and honey.