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Are Your Accounts Safe After the Recent Bank Collapses? Yes.

The collapse of Silicon Valley Bank (SVB) has been dominating headlines and causing confusion and concern among investors. Our clients are our number one priority, and we want to be sure you understand the current bank collapse situation and how it might affect your accounts. The bottom line: Your accounts are safe. The firm stands behind Federal Deposit Insurance Corporation (FDIC) coverage of its Core Accounts Sweep Program provided to clients. The FDIC insures up to $250,000 per depositor at each insured bank. Commonwealth’s network of 27 banks creates a safety net for much more than that by cascading funds across insured institutions to offer maximum security.

What does it mean that the stock market leads the economy? And why does it? What are some examples?

Here are ten of the most common investment mistakes:

Evidence-based investing (EBI) is an investment philosophy and strategy built on decades of historical data and research, not on gut feelings or best guesses. The research shows that asset allocation, usually via low-cost index funds, increases the probability of outperforming active or individual stock-picking strategies over the long term.

This article, however, addresses only key provisions pertaining to individual retirement savers (or accounts) and rules applicable to individuals rather than plan sponsors and administrators. The bill is quite broad (more than 4,000 pages), so we intend this article to be a high-level summary addressing the items most likely to affect individuals.

While thinking and talking about this can be fun and entertaining, we should remember no one has a crystal ball. No one. Too many of us are fooled by randomness. Therefore, instead of planning for one outcome or one prediction, we need to plan for a range of outcomes. "He who lives by the crystal ball will eat shattered glass." -- Ray Dalio

What do those outcomes look like?

A few interesting predicted-outcomes are as follows.

It is still wild times indeed and volatility continues. The bear market is upon us. Buckle up, but brace yourself to make it through unscathed.

There’s nowhere to run with stocks down, bonds down, crypto down, inflation eating away at cash, and currencies depreciating vs. the dollar.

And we rarely see the Fed raising rates into a bear market or a recession.

So, what should you do?

Inflation data has come in and changed interest rate expectations. Minneapolis Fed President Neel Kashkari provided clear insight a few weeks ago. Read more here.

Many Americans believe they can retire on 500k in a retirement account like a Traditional IRA or a 401k. Is this possible?