1 00:00:28,450 --> 00:00:34,150 Suze: March 12th 2023. Welcome everybody to the Women and Money 2 00:00:34,150 --> 00:00:39,909 Suze: podcast and everybody smart enough to listen, Suze O here, 3 00:00:39,920 --> 00:00:46,100 Suze: now today's podcast was supposed to be on your net 4 00:00:46,110 --> 00:00:49,690 Suze: worth how you calculated, how it relates to real estate 5 00:00:49,690 --> 00:00:51,970 Suze: and things like that. However, 6 00:00:52,700 --> 00:00:59,120 Suze: because of one of the second biggest bank collapses in 7 00:00:59,120 --> 00:01:02,150 Suze: the history of the United States, 8 00:01:02,940 --> 00:01:07,369 Suze: Silicon Valley Bank or better known as S V B. 9 00:01:07,440 --> 00:01:10,750 Suze: A lot of you have been posting and emailing me 10 00:01:10,750 --> 00:01:15,060 Suze: and going, Suze. Can you just explain all of this 11 00:01:15,060 --> 00:01:20,020 Suze: to us and is our money safe at Alliant Credit Union? 12 00:01:20,209 --> 00:01:23,200 Suze: So let me just briefly say, and I'll go into 13 00:01:23,200 --> 00:01:26,369 Suze: more detail about Alliant in a little bit. 14 00:01:26,550 --> 00:01:32,319 Suze: Your money is absolutely safe at Alliant. Very, very different. 15 00:01:32,330 --> 00:01:38,039 Suze: A credit union versus a commercial bank. You are to 16 00:01:38,040 --> 00:01:42,600 Suze: seriously get out your Suze notebooks right now because I'm 17 00:01:42,600 --> 00:01:48,000 Suze: going to give you a financial lesson as to how 18 00:01:48,070 --> 00:01:53,430 Suze: banks and credit unions for that matter work. Are you ready? 19 00:01:53,870 --> 00:01:54,900 Suze: Let's go. 20 00:01:55,770 --> 00:02:02,340 Suze: Like I said, originally, Silicon Valley bank or SVB was 21 00:02:02,340 --> 00:02:06,380 Suze: the second biggest bank in U S history, 22 00:02:07,480 --> 00:02:14,590 Suze: you know, since actually Washington mutual went under in 2008. 23 00:02:15,360 --> 00:02:22,600 Suze: Now SVB was founded in about 1983. And because they 24 00:02:22,600 --> 00:02:27,560 Suze: were located in the heart of the tech startups in 25 00:02:27,560 --> 00:02:32,430 Suze: Silicon Valley. Remember Silicon Valley, don't you remember all of 26 00:02:32,430 --> 00:02:36,850 Suze: you hearing about how Amazon and Apple and Google, and 27 00:02:36,850 --> 00:02:39,210 Suze: they were all right there. 28 00:02:40,280 --> 00:02:46,200 Suze: Because this bank decided to go after that kind of business. 29 00:02:46,470 --> 00:02:55,900 Suze: They located right there and called themselves the Silicon Valley Bank. Okay. 30 00:02:56,590 --> 00:03:00,730 Suze: And they started to be known as a bank that 31 00:03:00,730 --> 00:03:02,019 Suze: specialized 32 00:03:03,020 --> 00:03:07,030 Suze: in if you were a startup, meaning you were just 33 00:03:07,030 --> 00:03:10,959 Suze: starting up a tech company for the very first time 34 00:03:11,600 --> 00:03:15,260 Suze: or even if you were an established tech company that 35 00:03:15,260 --> 00:03:21,290 Suze: continue to need money, money from who? Venture capitalists. And 36 00:03:21,290 --> 00:03:26,139 Suze: a venture capitalist is somebody who is very, very wealthy 37 00:03:26,139 --> 00:03:30,880 Suze: or a firm that is very, very wealthy that has 38 00:03:30,889 --> 00:03:35,180 Suze: all of this money. And they hear about an idea 39 00:03:35,190 --> 00:03:36,770 Suze: of a tech company. 40 00:03:37,070 --> 00:03:39,860 Suze: The first time they ever heard about Google, the first 41 00:03:39,860 --> 00:03:42,680 Suze: time they ever heard about Facebook, the first time they 42 00:03:42,680 --> 00:03:46,690 Suze: ever heard about Airbnb and they are the ones that 43 00:03:46,690 --> 00:03:51,650 Suze: seed it. They give these companies their seed money, just 44 00:03:51,650 --> 00:03:55,390 Suze: like a seed that grows a plant, their seed money 45 00:03:55,450 --> 00:04:01,030 Suze: that allows these firms to get off the ground and grow. 46 00:04:01,120 --> 00:04:03,710 Suze: And for that investment, 47 00:04:03,970 --> 00:04:10,100 Suze: they own a significant portion of that company. And if 48 00:04:10,110 --> 00:04:16,120 Suze: that company hits, they make billions and billions of dollars. 49 00:04:16,770 --> 00:04:20,130 Suze: So S V B, the bank 50 00:04:20,980 --> 00:04:26,550 Suze: was the bank that was known if you have a startup, 51 00:04:26,630 --> 00:04:31,430 Suze: especially in Silicon Valley, which they all were and you 52 00:04:31,430 --> 00:04:35,020 Suze: were getting venture capital money, 53 00:04:35,670 --> 00:04:40,030 Suze: the place that you were to put that money was where? 54 00:04:40,050 --> 00:04:43,200 Suze: Into S V B 55 00:04:43,880 --> 00:04:46,610 Suze: does that make sense to all of you? 56 00:04:47,350 --> 00:04:51,159 Suze: So you banked with them and you put all your 57 00:04:51,160 --> 00:04:52,630 Suze: money with them? 58 00:04:53,320 --> 00:04:56,830 Suze: And really, I think it was at the end of 59 00:04:56,839 --> 00:04:58,030 Suze: last year 60 00:04:58,990 --> 00:05:05,800 Suze: SVB had approximately 210 billion 61 00:05:06,400 --> 00:05:13,420 Suze: billion dollars in assets, everybody. Money that all these tech 62 00:05:13,420 --> 00:05:20,520 Suze: startups simply deposited there and it was sitting there waiting 63 00:05:20,529 --> 00:05:26,279 Suze: for them to use it. Now when one deposits money 64 00:05:26,650 --> 00:05:32,400 Suze: in a bank or a credit union, that financial institution 65 00:05:32,410 --> 00:05:35,010 Suze: has to do something with all of that money. 66 00:05:35,720 --> 00:05:40,089 Suze: They have to usually take that money and invest it 67 00:05:40,350 --> 00:05:45,590 Suze: and what do they invest in? They usually invest in bonds. 68 00:05:45,630 --> 00:05:49,339 Suze: A lot of treasuries, a lot of different kinds of bonds. 69 00:05:49,350 --> 00:05:54,080 Suze: And remember a bond is a debt instrument that pays 70 00:05:54,089 --> 00:05:59,089 Suze: a specific interest rate for a specific period of time. 71 00:05:59,330 --> 00:06:04,040 Suze: And most bonds, individual bonds have a maturity date 72 00:06:04,529 --> 00:06:08,250 Suze: where the investor knows that they are going to get 73 00:06:08,260 --> 00:06:12,140 Suze: back whatever amount of money they put in there, they 74 00:06:12,140 --> 00:06:15,950 Suze: will get that money back at maturity date. 75 00:06:16,850 --> 00:06:21,410 Suze: Between the time they buy it and the bond matures, 76 00:06:22,520 --> 00:06:27,280 Suze: the value of that bond goes up or down depending 77 00:06:27,279 --> 00:06:30,640 Suze: on interest rates. Do you remember these lessons that I 78 00:06:30,640 --> 00:06:35,360 Suze: was teaching you all the way back in 2022 79 00:06:35,960 --> 00:06:39,730 Suze: and previously on every show I have ever done. 80 00:06:40,600 --> 00:06:44,640 Suze: So that it's important that you understand that not only 81 00:06:44,650 --> 00:06:48,510 Suze: are you subjected to when interest rates move and you're 82 00:06:48,510 --> 00:06:53,680 Suze: invested in bonds, so are the financial institutions that take 83 00:06:53,680 --> 00:06:59,109 Suze: your deposits, put them into bonds to secure the interest 84 00:06:59,110 --> 00:07:04,430 Suze: rate that they can give you. Okay, when interest rates 85 00:07:04,440 --> 00:07:06,969 Suze: were really, really low. 86 00:07:07,570 --> 00:07:10,290 Suze: And there was a period of time. Do you remember 87 00:07:10,300 --> 00:07:15,140 Suze: when you couldn't even get like 0.5% on the money 88 00:07:15,150 --> 00:07:18,480 Suze: that you had in a savings account? In fact, many 89 00:07:18,480 --> 00:07:23,940 Suze: of you still foolishly, truthfully, have your money invested in 90 00:07:23,940 --> 00:07:28,810 Suze: many banks that are just giving you .6% or less 91 00:07:28,810 --> 00:07:32,820 Suze: than 1% on your money that is sitting there, 92 00:07:33,100 --> 00:07:37,920 Suze: while they, the financial institution has been able to invest 93 00:07:37,920 --> 00:07:43,000 Suze: that money and get 2%, maybe 4% on it today. 94 00:07:44,380 --> 00:07:47,410 Suze: But that is besides the point, let's go back to 95 00:07:47,410 --> 00:07:51,680 Suze: what I was talking about. So when interest rates were really, 96 00:07:51,680 --> 00:07:52,630 Suze: really low, 97 00:07:53,300 --> 00:07:57,940 Suze: that was at the time when lots of money was 98 00:07:57,940 --> 00:08:01,460 Suze: flowing into S V B 99 00:08:02,490 --> 00:08:06,960 Suze: because when interest rates were low, remember this, now 100 00:08:07,190 --> 00:08:13,020 Suze: tech stocks were skyrocketing. You had Amazon going through the roof, 101 00:08:13,030 --> 00:08:16,660 Suze: you had Netflix going through the roof, you had Google 102 00:08:16,660 --> 00:08:20,320 Suze: going through the roof, you had Apple going through the roof, 103 00:08:20,330 --> 00:08:25,160 Suze: you had companies like Snowflake and Salesforce and, and Envideo 104 00:08:25,170 --> 00:08:29,540 Suze: and on and on, going through the roof going to 105 00:08:29,550 --> 00:08:33,520 Suze: hundreds and hundreds and thousands of dollars a share. 106 00:08:34,520 --> 00:08:39,200 Suze: And so what was happening then? Because the stock price 107 00:08:39,210 --> 00:08:43,060 Suze: of all the tech companies were going up so much, 108 00:08:43,070 --> 00:08:46,850 Suze: venture capitalists still wanted to invest in them and they 109 00:08:46,850 --> 00:08:50,780 Suze: were flowing money into these tech firms so they could 110 00:08:50,780 --> 00:08:54,679 Suze: continue to grow. They would take that money and put 111 00:08:54,679 --> 00:08:57,590 Suze: it where? In S V B, 112 00:08:58,250 --> 00:09:03,839 Suze: and SVB had to invest that money at the time 113 00:09:03,850 --> 00:09:08,240 Suze: when interest rates and bonds were so very, very low. 114 00:09:08,790 --> 00:09:22,959 Suze: And in fact SVB had invested about $21 billion at that time, with an average interest rate at that time of 1.79%. 115 00:09:24,710 --> 00:09:28,400 Suze: Now think about it, have I not been telling you 116 00:09:28,820 --> 00:09:33,660 Suze: that treasury bills are at about 4%. The 10 year 117 00:09:33,660 --> 00:09:37,790 Suze: treasury bill is at about 4% right now. And even 118 00:09:37,790 --> 00:09:42,920 Suze: short term treasuries and certificates of deposit are a whole 119 00:09:42,920 --> 00:09:44,929 Suze: lot higher than that. 120 00:09:45,670 --> 00:09:48,939 Suze: And this is when the trouble really started. 121 00:09:49,600 --> 00:09:52,940 Suze: Now, as again, I'm just going to say to you remember, 122 00:09:52,940 --> 00:09:57,939 Suze: I have taught you this concept: when interest rates go up, 123 00:09:58,530 --> 00:10:01,040 Suze: the value of bonds go down, 124 00:10:01,730 --> 00:10:07,829 Suze: when interest rates go down, the value of bonds go up. 125 00:10:07,840 --> 00:10:11,510 Suze: Which again is why I was telling you get out 126 00:10:11,520 --> 00:10:15,950 Suze: of bond funds, especially long term bond funds a year 127 00:10:15,950 --> 00:10:19,160 Suze: or so ago because we knew interest rates were going 128 00:10:19,160 --> 00:10:22,530 Suze: to go up, which meant that the value of your 129 00:10:22,530 --> 00:10:28,240 Suze: bond funds went down. And just like SVB, you saw 130 00:10:28,240 --> 00:10:30,699 Suze: how the value of your bond funds 131 00:10:31,309 --> 00:10:38,550 Suze: and possibly individual bonds also went down 20 or 30% 132 00:10:38,570 --> 00:10:42,410 Suze: in value. Now, I want you to put a pin 133 00:10:42,410 --> 00:10:48,680 Suze: in that for just a second. Now, while interest rates 134 00:10:48,679 --> 00:10:49,910 Suze: were going up, 135 00:10:50,610 --> 00:10:54,469 Suze: you know, the market was also going down. 136 00:10:55,120 --> 00:11:00,050 Suze: We had many, many Suze Schools on that, that the 137 00:11:00,050 --> 00:11:04,700 Suze: biggest damage to the market would be done when interest 138 00:11:04,700 --> 00:11:08,370 Suze: rates continue to go up. Because why invest in the 139 00:11:08,370 --> 00:11:12,900 Suze: stock market when you could get four or 5% or 140 00:11:12,900 --> 00:11:15,750 Suze: more without having to risk your money. 141 00:11:16,470 --> 00:11:21,200 Suze: So as interest rates started to go up, what sector 142 00:11:21,380 --> 00:11:26,080 Suze: of the stock market, everybody, got hit the most? We've 143 00:11:26,080 --> 00:11:30,610 Suze: talked about this. Do you know, remember it was the 144 00:11:30,610 --> 00:11:36,880 Suze: tech sector? You saw stocks go from 700 down to 145 00:11:36,890 --> 00:11:42,620 Suze: 200 down to zero. You saw stocks in the tech 146 00:11:42,630 --> 00:11:43,580 Suze: sector 147 00:11:44,380 --> 00:11:47,209 Suze: absolutely be obliterated. 148 00:11:48,080 --> 00:11:52,989 Suze: And as they were going down and down in value, 149 00:11:53,850 --> 00:11:59,690 Suze: the venture capitalists started to get not so lenient with 150 00:11:59,690 --> 00:12:03,310 Suze: their money, they started to say, wait a minute, these 151 00:12:03,309 --> 00:12:06,980 Suze: stocks are going down way too much and maybe we 152 00:12:06,980 --> 00:12:09,950 Suze: should just wait a little bit to put more of 153 00:12:09,960 --> 00:12:15,630 Suze: our money in them. Especially the startups that haven't even 154 00:12:15,630 --> 00:12:19,260 Suze: been traded yet on the stock exchange 155 00:12:20,110 --> 00:12:25,350 Suze: As the venture capital money started to dry up, 156 00:12:26,130 --> 00:12:31,490 Suze: that caused many other startups who used to use the 157 00:12:31,490 --> 00:12:35,870 Suze: money that the venture capitalists would give them to pay 158 00:12:35,870 --> 00:12:37,950 Suze: their bills and everything 159 00:12:38,929 --> 00:12:43,580 Suze: that caused the startups to start using the money 160 00:12:44,170 --> 00:12:49,070 Suze: that was on deposit at S V B to pay 161 00:12:49,080 --> 00:12:50,610 Suze: their bills. 162 00:12:51,140 --> 00:12:58,560 Suze: Now, SVB in order to meet the withdrawal demands of 163 00:12:58,559 --> 00:13:04,980 Suze: those clients, they had to sell bonds that had backed 164 00:13:04,990 --> 00:13:08,830 Suze: those investments. Do you get where I'm going here right now? 165 00:13:10,080 --> 00:13:14,340 Suze: And they needed to sell them at a time when 166 00:13:14,350 --> 00:13:19,000 Suze: interest rates have been skyrocketing. Right now, we can take 167 00:13:19,000 --> 00:13:21,900 Suze: that pin out that I had you put in. 168 00:13:23,100 --> 00:13:29,820 Suze: But those bond investments, because interest rates went up, they 169 00:13:29,820 --> 00:13:36,520 Suze: were all selling at that time for a serious serious loss. Again, 170 00:13:36,520 --> 00:13:40,610 Suze: think about your own portfolios. And for those of you 171 00:13:40,620 --> 00:13:43,890 Suze: who had money in bond funds, 172 00:13:45,059 --> 00:13:52,000 Suze: you were down at one point about 30%. Okay. So 173 00:13:52,010 --> 00:14:00,429 Suze: SVB was selling these investments at a serious loss. So 174 00:14:00,429 --> 00:14:04,610 Suze: they were starting to run out of money to pay 175 00:14:04,620 --> 00:14:08,990 Suze: their depositors the request when they wanted money. 176 00:14:09,510 --> 00:14:17,120 Suze: Last Wednesday, SVB announced that they had sold a big 177 00:14:17,120 --> 00:14:22,130 Suze: part of their holdings at a serious loss. 178 00:14:22,920 --> 00:14:25,750 Suze: And I have to tell you Wall Street did not 179 00:14:25,750 --> 00:14:31,030 Suze: like that and it really didn't like it when SVB 180 00:14:31,040 --> 00:14:37,410 Suze: also announced it was going to sell $2.25 billion dollars 181 00:14:37,410 --> 00:14:39,560 Suze: worth of its shares. 182 00:14:40,250 --> 00:14:44,570 Suze: And when that happened at the same time, that totally 183 00:14:44,570 --> 00:14:48,080 Suze: spooked all the venture capital people 184 00:14:48,880 --> 00:14:53,920 Suze: who had large sums of money via these startups in 185 00:14:53,960 --> 00:14:55,410 Suze: S V B. 186 00:14:56,220 --> 00:14:59,310 Suze: And I have to tell you even the other day, 187 00:14:59,310 --> 00:15:02,300 Suze: as you know, I have a startup by the name 188 00:15:02,300 --> 00:15:06,560 Suze: of Secure Save dot com and we are not part 189 00:15:06,560 --> 00:15:08,580 Suze: of this on any level, obviously. 190 00:15:08,760 --> 00:15:14,630 Suze: Even the CEO of Secure Save was telling me the 191 00:15:14,630 --> 00:15:18,300 Suze: other day how he was on a call with 20 192 00:15:18,310 --> 00:15:22,390 Suze: other C E O s of these kind of startups. 193 00:15:22,500 --> 00:15:27,840 Suze: And everybody was getting calls from their venture capitalists saying 194 00:15:27,850 --> 00:15:32,450 Suze: if you have money in SVB, we want you to 195 00:15:32,460 --> 00:15:35,070 Suze: get it out of there right now 196 00:15:35,520 --> 00:15:41,480 Suze: because remember when a venture capitalist invests in a startup, 197 00:15:41,790 --> 00:15:45,270 Suze: even though it is the startup's money, 198 00:15:46,480 --> 00:15:50,040 Suze: it's really the money and the future of the venture 199 00:15:50,040 --> 00:15:55,060 Suze: capitalist that put that money there via the startup. Did 200 00:15:55,060 --> 00:15:56,530 Suze: that make sense to you? 201 00:15:57,490 --> 00:16:03,800 Suze: So, what happened then, because the phone started to ring everywhere, 202 00:16:03,810 --> 00:16:09,520 Suze: get your money out of SVB. That started a run 203 00:16:09,530 --> 00:16:13,340 Suze: on the bank. When the run started on the bank, 204 00:16:13,350 --> 00:16:16,710 Suze: the stock market and the share started to go down 205 00:16:16,710 --> 00:16:20,350 Suze: and down and down and down and down. And everybody 206 00:16:20,350 --> 00:16:23,780 Suze: started to freak and that caused people to line up 207 00:16:23,790 --> 00:16:27,010 Suze: outside to get their money out. 208 00:16:27,190 --> 00:16:32,720 Suze: Now, while all of this was happening. SVB, they tried 209 00:16:32,720 --> 00:16:36,720 Suze: to find a buyer, they tried to raise more capital 210 00:16:36,750 --> 00:16:41,420 Suze: to meet the demands of their depositors. But before they 211 00:16:41,430 --> 00:16:46,700 Suze: could do that, the regulators of California shut it down 212 00:16:46,710 --> 00:16:51,940 Suze: and placed it in receivership under the F D I C. 213 00:16:52,550 --> 00:16:59,130 Suze: Now, what does that mean for the depositors of S 214 00:16:59,130 --> 00:17:03,880 Suze: V P? The ones that had their money in there? Listen, 215 00:17:04,200 --> 00:17:09,790 Suze: if those depositors simply followed the guidelines of F D 216 00:17:09,790 --> 00:17:10,710 Suze: I C. 217 00:17:11,380 --> 00:17:15,290 Suze: Then on Monday they're going to have all of their money. 218 00:17:15,300 --> 00:17:21,670 Suze: No big deal at all. Everybody, that's why you always 219 00:17:21,670 --> 00:17:27,980 Suze: want to follow the guidelines of at least $250,000 of 220 00:17:27,980 --> 00:17:33,750 Suze: insurance for FDIC or NCUA for credit unions. And as 221 00:17:33,750 --> 00:17:36,270 Suze: I have taught you in past podcasts, 222 00:17:36,670 --> 00:17:40,610 Suze: it is so easy to have so much more than 223 00:17:40,609 --> 00:17:45,920 Suze: $250,000 of insurance at a credit union or a bank 224 00:17:46,390 --> 00:17:51,290 Suze: by simply knowing the rules. I mean, I have in 225 00:17:51,290 --> 00:17:54,780 Suze: some banks and a credit union. I have more than 226 00:17:54,780 --> 00:17:56,399 Suze: $1 million dollars there 227 00:17:56,840 --> 00:17:59,540 Suze: and I'm not worried about it because the way I 228 00:17:59,540 --> 00:18:04,740 Suze: structured the account all insured under N C U A 229 00:18:04,750 --> 00:18:06,800 Suze: or F D I C. 230 00:18:07,510 --> 00:18:12,090 Suze: But those people who did not pay attention in this 231 00:18:12,090 --> 00:18:17,369 Suze: case to the F D I C guidelines. Yeah, they're 232 00:18:17,380 --> 00:18:24,640 Suze: in jeopardy right now. However, what usually happens is that 233 00:18:24,650 --> 00:18:28,570 Suze: obviously those who met the guidelines of F D I C, 234 00:18:28,680 --> 00:18:31,270 Suze: they will have their money on Monday. 235 00:18:31,900 --> 00:18:35,460 Suze: But once the F D I C is able to 236 00:18:35,470 --> 00:18:38,560 Suze: actually sell S V B 237 00:18:39,250 --> 00:18:42,139 Suze: and we'll see if they can do that or not. 238 00:18:43,080 --> 00:18:46,850 Suze: Those who are outside the F D I C limits, 239 00:18:47,300 --> 00:18:50,629 Suze: meaning they had more money in there than what F 240 00:18:50,630 --> 00:18:52,449 Suze: D I C would have covered. 241 00:18:53,109 --> 00:18:57,639 Suze: Hopefully they will also get their money back. However, 242 00:18:58,440 --> 00:19:02,580 Suze: right now, I don't know, doesn't seem like they have 243 00:19:02,590 --> 00:19:04,040 Suze: any buyers. 244 00:19:04,619 --> 00:19:10,400 Suze: So that's what's happening there. That's why it happened. The 245 00:19:10,400 --> 00:19:14,850 Suze: real sad part is now many of the new tech 246 00:19:14,850 --> 00:19:20,350 Suze: firm startups most likely won't be able to pay their payroll. 247 00:19:20,510 --> 00:19:24,300 Suze: That's when other people that had nothing to do with 248 00:19:24,300 --> 00:19:30,610 Suze: this really like the workers they get affected. Next, many 249 00:19:30,609 --> 00:19:33,270 Suze: of you have been writing me saying so Suze, 250 00:19:33,530 --> 00:19:37,619 Suze: how does affect us in Alliant Credit Union? 251 00:19:38,550 --> 00:19:42,889 Suze: Alright. First you have to know that S V B 252 00:19:42,930 --> 00:19:50,820 Suze: was a commercial bank. They mainly did business with other businesses. 253 00:19:51,520 --> 00:19:55,350 Suze: They didn't really do a lot of business with people 254 00:19:55,350 --> 00:20:01,810 Suze: like you, they did business with tech start ups. Alliant 255 00:20:01,820 --> 00:20:03,160 Suze: Credit Union 256 00:20:03,859 --> 00:20:09,420 Suze: is not a commercial credit union. They are a retail 257 00:20:09,430 --> 00:20:15,130 Suze: credit union which means they do business with people like you. 258 00:20:15,940 --> 00:20:19,560 Suze: They make loans, yes, but for a house for a 259 00:20:19,560 --> 00:20:21,750 Suze: car for things like that. 260 00:20:22,890 --> 00:20:28,629 Suze: That's number one, number two, Alliant is not a bank. 261 00:20:28,650 --> 00:20:30,889 Suze: They are a credit union 262 00:20:31,440 --> 00:20:37,030 Suze: so they have to answer to you, their members, not 263 00:20:37,040 --> 00:20:43,600 Suze: their shareholders like a bank does. Remember Alliance isn't on 264 00:20:43,609 --> 00:20:45,030 Suze: a stock exchange. 265 00:20:45,800 --> 00:20:48,960 Suze: You don't see it going up and down in value 266 00:20:49,670 --> 00:20:54,030 Suze: because that's not how it works. Banks, there are many 267 00:20:54,030 --> 00:20:59,020 Suze: banks and they are on the stock exchange and they 268 00:20:59,020 --> 00:21:03,040 Suze: go up and down in value like SVB 269 00:21:03,630 --> 00:21:07,030 Suze: according to what their earnings are and how they're doing. 270 00:21:07,690 --> 00:21:14,430 Suze: So again. Aliant, they serve people like you. However, with 271 00:21:14,430 --> 00:21:15,400 Suze: that said, 272 00:21:15,950 --> 00:21:19,750 Suze: I had a very long talk with Dennis Devine, the 273 00:21:19,750 --> 00:21:23,840 Suze: CEO of Alliant Credit Union. I did not write him. 274 00:21:23,960 --> 00:21:27,430 Suze: I did not request that email or the wanting to 275 00:21:27,430 --> 00:21:31,990 Suze: talk to him. He wanted to make sure that all 276 00:21:31,990 --> 00:21:36,609 Suze: of you were okay. He wanted to make sure, was 277 00:21:36,609 --> 00:21:37,830 Suze: there anything 278 00:21:38,500 --> 00:21:43,540 Suze: that the women and Money podcast listeners would want to know? 279 00:21:43,950 --> 00:21:46,330 Suze: I want you to think about that for a second. 280 00:21:47,280 --> 00:21:54,350 Suze: That's called Integrity. On a Saturday morning for a CEO 281 00:21:54,560 --> 00:22:00,310 Suze: of a major financial institution to write to say, Suze, 282 00:22:00,320 --> 00:22:03,330 Suze: what can I do for your listeners? 283 00:22:04,300 --> 00:22:05,859 Suze: Are you kidding me? 284 00:22:06,590 --> 00:22:10,369 Suze: So we had a really, really long talk 285 00:22:10,990 --> 00:22:15,770 Suze: And again, there really wasn't much to say because 286 00:22:17,590 --> 00:22:21,980 Suze: Alliant Credit Union is there to serve you. They invest your 287 00:22:21,980 --> 00:22:24,429 Suze: money very conservatively 288 00:22:25,080 --> 00:22:28,190 Suze: so that it is there no matter what. 289 00:22:28,920 --> 00:22:32,100 Suze: And if you simply abide by the limits of N 290 00:22:32,100 --> 00:22:37,090 Suze: C U A, which is the insurance that governs credit unions. 291 00:22:37,190 --> 00:22:42,720 Suze: Are you kidding me? You have nothing to worry about ever. 292 00:22:43,250 --> 00:22:47,950 Suze: And I posted on the Women and Money app, that 293 00:22:47,960 --> 00:22:52,430 Suze: calculator that you could use to see how you could 294 00:22:52,430 --> 00:22:59,790 Suze: get far more than $250,000 of insurance at Alliant. Because 295 00:22:59,790 --> 00:23:04,220 Suze: so many of you have taken advantage of the certificates 296 00:23:04,220 --> 00:23:08,680 Suze: of deposit. That Alliant Credit Union is currently offering 297 00:23:08,810 --> 00:23:13,230 Suze: the three month at 4.85% A P Y, the six 298 00:23:13,230 --> 00:23:16,700 Suze: month at 5% A P Y. 299 00:23:17,500 --> 00:23:24,369 Suze: So many of you are depositing 500,000 - 800,000 large sums of money. 300 00:23:25,010 --> 00:23:28,680 Suze: And you have to know that that money is insured 301 00:23:28,690 --> 00:23:33,500 Suze: under NCUA and it is so easy to do, it's 302 00:23:33,500 --> 00:23:38,280 Suze: not even funny. You're married. So you open up one 303 00:23:38,290 --> 00:23:44,560 Suze: account for yourself. $250,000 of insurance. You open up one 304 00:23:44,560 --> 00:23:49,970 Suze: for your spouse, another $250,000 of insurance. You open up 305 00:23:49,980 --> 00:23:51,270 Suze: a joint account 306 00:23:51,770 --> 00:24:07,010 Suze: $250,000 then for each of you. That's $1 million $1 307 00:24:07,010 --> 00:24:12,350 Suze: million dollars of insurance on just one account by simply 308 00:24:12,350 --> 00:24:14,920 Suze: naming up to five beneficiaries. 309 00:24:15,560 --> 00:24:19,810 Suze: And that would be what? A lot of money. So 310 00:24:19,810 --> 00:24:25,260 Suze: it's so easy to protect yourselves. It's not even funny. 311 00:24:25,270 --> 00:24:28,790 Suze: You just have to make sure that you abide by 312 00:24:28,790 --> 00:24:32,530 Suze: the guidelines. And yesterday, I just have to go back 313 00:24:32,530 --> 00:24:36,800 Suze: to SBV for one second here. Yesterday, I got a 314 00:24:36,800 --> 00:24:37,609 Suze: text 315 00:24:38,010 --> 00:24:42,850 Suze: from somebody that I just love who is in California. 316 00:24:42,859 --> 00:24:45,879 Suze: And she says to me, Oh my God, Suze, one 317 00:24:45,880 --> 00:24:49,479 Suze: of my really good friends is a CEO of a 318 00:24:49,480 --> 00:24:58,580 Suze: tech startup and he had $37 million SVB and he 319 00:24:58,580 --> 00:24:59,840 Suze: cannot get it. 320 00:25:01,430 --> 00:25:02,530 Suze: I don't know. 321 00:25:03,330 --> 00:25:07,980 Suze: What was he thinking? What was he thinking? 322 00:25:08,730 --> 00:25:12,820 Suze: Wouldn't matter how interest rate or anything that he was 323 00:25:12,820 --> 00:25:16,770 Suze: being paid. Why would you ever have that much money in 324 00:25:16,780 --> 00:25:23,310 Suze: one place that wasn't insured really? Because there's so many 325 00:25:23,310 --> 00:25:25,850 Suze: ways that it can be done. 326 00:25:26,369 --> 00:25:28,680 Suze: Back to Alliant however, 327 00:25:29,270 --> 00:25:34,070 Suze: I just want to say something about Dennis Devine. I 328 00:25:34,070 --> 00:25:37,560 Suze: have never in my history 329 00:25:38,830 --> 00:25:43,540 Suze: found a CEO of a major institution and I know 330 00:25:43,540 --> 00:25:45,640 Suze: I just said this but I am going to repeat 331 00:25:45,640 --> 00:25:50,800 Suze: it because it is true, everybody. Who cares about you 332 00:25:51,460 --> 00:25:56,160 Suze: as much as Mr Dennis Devine does and because he 333 00:25:56,160 --> 00:26:00,340 Suze: cares about you, he cares about your money 334 00:26:00,950 --> 00:26:04,550 Suze: and when you become a member of Alliant Credit Union, 335 00:26:04,580 --> 00:26:10,430 Suze: then it is his responsibility to take care of his members. 336 00:26:11,510 --> 00:26:15,770 Suze: So I have money at Alliant Credit Union. KT did 337 00:26:15,780 --> 00:26:18,430 Suze: exactly what she said she was going to do. She 338 00:26:18,430 --> 00:26:23,960 Suze: has money there and I don't have any worries whatsoever. 339 00:26:24,230 --> 00:26:26,280 Suze: And that is why 340 00:26:26,900 --> 00:26:31,180 Suze: I feel so great about having partnered with them 341 00:26:31,900 --> 00:26:35,750 Suze: for the Women and Money podcast. Really. Everybody I could 342 00:26:35,750 --> 00:26:39,639 Suze: have chosen anybody. Do you have any idea how many 343 00:26:39,640 --> 00:26:46,670 Suze: financial institutions and other advertisers line up to sponsor this podcast? 344 00:26:47,590 --> 00:26:53,370 Suze: But for three years now, I have chosen Alliant Credit Union. 345 00:26:53,530 --> 00:26:59,570 Suze: They didn't choose me. I chose them because I knew 346 00:27:00,170 --> 00:27:03,679 Suze: that they were the place for you always to bring 347 00:27:03,690 --> 00:27:09,060 Suze: your money home to. And I seriously hope you have. 348 00:27:10,130 --> 00:27:12,320 Suze: So, what's the lesson here? 349 00:27:13,100 --> 00:27:16,310 Suze: The lesson is bigger isn't necessarily better 350 00:27:17,260 --> 00:27:22,220 Suze: and the lesson is when interest rates go up and 351 00:27:22,220 --> 00:27:27,230 Suze: the value of bonds go down, it just doesn't affect you. 352 00:27:27,240 --> 00:27:33,710 Suze: It affects financial institutions that invested this money a long 353 00:27:33,710 --> 00:27:37,570 Suze: time ago when interest rates were lower. 354 00:27:38,140 --> 00:27:42,840 Suze: So, will this cause a lot more of banks to 355 00:27:42,840 --> 00:27:46,620 Suze: go belly up and financial institutions to be in trouble? 356 00:27:47,170 --> 00:27:51,540 Suze: I don't think it will be like it was in 2008. 357 00:27:51,550 --> 00:27:55,890 Suze: Will really small banks possibly or banks that have to 358 00:27:55,900 --> 00:27:59,520 Suze: do with cryptocurrencies and things like that. Oh yeah, they 359 00:27:59,520 --> 00:28:01,830 Suze: could be absolutely in trouble. 360 00:28:02,359 --> 00:28:06,709 Suze: But for all of you, you don't have to worry 361 00:28:06,720 --> 00:28:09,430 Suze: if you continue to do what I am asking you 362 00:28:09,430 --> 00:28:14,690 Suze: to do, especially if you're doing it with Alliant Credit Union. 363 00:28:15,340 --> 00:28:19,690 Suze: And this is not an advertisement for Alliant Credit Union. 364 00:28:19,790 --> 00:28:24,220 Suze: This is a plea to all of you to keep 365 00:28:24,230 --> 00:28:29,280 Suze: your money safe and sound period because as I've told 366 00:28:29,280 --> 00:28:33,140 Suze: you over the past many podcasts, I don't like what's 367 00:28:33,140 --> 00:28:36,629 Suze: happening in Cryptocurrency. I don't like what's happening in the 368 00:28:36,630 --> 00:28:40,140 Suze: stock market. I still think we are in the midst 369 00:28:40,150 --> 00:28:43,910 Suze: of a bear market and that these markets are going 370 00:28:43,910 --> 00:28:45,220 Suze: to continue down. 371 00:28:45,430 --> 00:28:49,620 Suze: I think home prices very well now can continue down 372 00:28:49,800 --> 00:28:52,280 Suze: that we know that the feds are going to continue 373 00:28:52,280 --> 00:28:53,900 Suze: to raise interest rates. 374 00:28:54,830 --> 00:28:59,680 Suze: So we have been positioned very, very nicely in three 375 00:28:59,680 --> 00:29:00,890 Suze: and six months, 376 00:29:01,450 --> 00:29:06,930 Suze: maturities in either the certificates with Alliant Credit Union or 377 00:29:06,930 --> 00:29:10,680 Suze: T bills that I will also say for many of you, 378 00:29:10,690 --> 00:29:14,180 Suze: I love the thank you emails I'm getting because of 379 00:29:14,180 --> 00:29:17,840 Suze: how easy it is to buy a certificate of deposit 380 00:29:17,840 --> 00:29:22,400 Suze: and renew it versus the T bills. I get it everybody. 381 00:29:22,510 --> 00:29:24,160 Suze: That's why we did it. 382 00:29:24,680 --> 00:29:28,750 Suze: But I've been encouraging you to do short term maturities. 383 00:29:28,760 --> 00:29:34,570 Suze: We'll see what I think in terms of the I bonds. Again, 384 00:29:34,570 --> 00:29:37,180 Suze: I keep going back and forth, but I have a 385 00:29:37,190 --> 00:29:42,190 Suze: whole long time to make a decision and I make 386 00:29:42,190 --> 00:29:46,280 Suze: my decisions not based on my gut. I make decisions 387 00:29:46,280 --> 00:29:52,780 Suze: based on hard numeric economic facts. And then I tell 388 00:29:52,780 --> 00:29:54,290 Suze: you what I think. 389 00:29:54,500 --> 00:30:00,959 Suze: So. That is the story of S V B. Alright, 390 00:30:00,990 --> 00:30:05,340 Suze: until Thursday when Miss Travis is back with me, 391 00:30:05,620 --> 00:30:08,650 Suze: there's only one thing that I want you to say 392 00:30:08,660 --> 00:30:15,350 Suze: every single day and that is as follows today. Wherever 393 00:30:15,350 --> 00:30:20,050 Suze: I go, I will create a more joyful, peaceful and 394 00:30:20,050 --> 00:30:26,470 Suze: loving world. And when you do that, you will be unstoppable.