The collapse of Silicon Valley Bank and the banking crisis provide 'a great case study' for clients, advisor says. Here's what investors need to know.
Without liquidity, SVB couldn't "absorb the shock of the cash run," and had to sell its assets at the wrong time, she said.
It's a valuable lesson for investors who may someday face their own cash crunch due to a job loss or another financial emergency, Braxton said. "You shouldn't be forced to go to the market for liquidity," she added.Co-founder and co-CEO of 2050 Wealth Partners For example, if you need funds, it's typically better to withdraw savings before selling investments in a brokerage account, she said., who need to manage their cash reserves to avoid selling portfolio assets when the market is down, known as the "sequence of returns" risk.is to keep three to six months of living expenses handy, Braxton urges her clients to maintain a six-month "cash cushion.", and a cash cushion may provide more options, she said.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
FDIC extends bidding for Silicon Valley Private Bank, Silicon Valley Bridge BankThe Federal Deposit Insurance Corp. said Monday it’s extending the bidding for former units and assets of Silicon Valley Bank, which has been renamed Silicon...
Read more »
Parent of Silicon Valley Bank seeks bankruptcy protectionThe parent of Silicon Valley Bank, seized last week by the U.S., is filing for Chapter 11 bankruptcy protection.
Read more »
Charles Payne deconstructs 'major excuse' Trump deregulation led to Silicon Valley Bank collapseFOX Business host Charles Payne, host of 'Making Money,' joined 'Life, Liberty & Levin' to sound off on Silicon Valley Bank's collapse earlier this week.
Read more »
Failure of Silicon Valley Bank mirrors the myth of the Wild WestInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »
Banking industry under pressure after Silicon Valley Bank collapseSilicon Valley Bank's collapse set off a domino effect across the banking industry with other banks needing to be bailed out. The turmoil has led to growing concerns among customers who want to know how safe their money is. CNBC’s Brian Cheung reports in this week’s Sunday Focus.
Read more »