The housing market in the Greater Toronto Area (GTA) is hot and getting hotter. If you’re looking for a new-build 4 bed, 4 bath home, you may be out of luck; however, there are plenty of other options available. In the past 180 days, houses of similar size have sold for around $1.5 million. Of course, this could vary depending on what specific features and amenities you’re looking for in your dream home.

The recent news of Silicon Valley Bank’s (SVB) potential failure has sparked a debate about the financial security of small and mid-sized businesses. SVB is a well-reputed bank that provides services to various startups, from small businesses to tech giants. However, due to some unexpected circumstances, SVB is now facing financial difficulties, leaving many people concerned about their deposits and investments in the bank. Some people have argued that depositors should only be insured up to $250,000 and any remaining assets should be appropriated by the government. Others have countered this argument with concerns over how this would impact small and mid-sized businesses who rely on the funds for their operations. In addition, there are worries about the impact on employees who may lose their jobs if these companies become insolvent as a result of this situation.

In 2021, Silicon Valley Bank (SVB) experienced a huge influx in deposits, jumping from $61.76bn at the end of 2019 to $189.20bn at the end of 2021. With such a large increase in funds, SVB was unable to grow its loan book fast enough to generate the yield they wanted on this capital. As a result, they invested in mortgage-backed securities (MBS) with these deposits for their hold-to-maturity (HTM) portfolio and got an average yield of 1.56%.

Silicon Valley Banks Share Woes: Lessons From the Bank Run of 1873 When it comes to banks, a lot has changed in the past 150 years. But one lesson from the 19th century still holds true today – never tell your customers that you’re in trouble if everyone takes their money out. The quote by Walter Bagehot “Every banker knows that if he has to prove that he is worthy of credit, however good may be his arguments, in fact his credit is gone” rings just as true today as it did back then.

When it comes to protecting yourself and your loved ones from financial ruin, it’s important to have a sound plan in place. For younger folks who don’t know much about investing, the strategy is typically low MER index funds. But for retirees, the safe but economically sound strategy is generally 70% or less in equities. If you are with EJ, then you should take a look at your portfolio and see what fees you are paying. There may be other options like robo advisors or independent CFPs that can help you create a plan that works for your needs.