The Impact of an Unstable Bank Industry on Your Retirement

The Impact of an Unstable Bank Industry on Your Retirement Hilltop Wealth Solutions

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 contact our advisors for a free evaluation of your financial situation.


Hilltop Wealth Solutions (“Hilltop”) is a registered investment advisor with the Securities and Exchange Commission (“SEC”) and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not imply a certain level of skill or training. Please refer to our Form ADV Part 2A disclosure and Client Relationship Summary (Form CRS) for additional information regarding the qualifications and business practices of Hilltop. Hilltop Wealth Solutions, LLC is an SEC Registered Investment Adviser firm. Hilltop Tax Solutions, LLC, is an affiliate of Hilltop. Wealth Solutions that provides tax and bookkeeping services.

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