Pacific Coast Financial Services, Inc

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Silvergate, Silicon Valley and Signature Bank failures – how do they affect me?

There are several answers to this question, so let’s go through them one a time. First if you were a stock investor in Silicon Valley bank (SVB) or Signature Bank (SBNY), it is straightforward, those stocks are no longer trading and those shares have no value, so your investment has no value. As for Silvergate (SI), they were not seized by the state banking regulators, so that stock is trading and equity holders still may eek some value from the investment. The closing price as of today was $1.18, a new 52 week low for the stock. The 52-week high was $162.65, so the stock is down 97%.

Once you get past the exposure to owning stocks in the banking sector, you should review our banking relationships as well. One glaring problem for Silicon and Signature Bank’s clients is that a vast majority of them were not FDIC insured, so without government intervention their bank deposits would be lost. The US Treasury, along with the Federal Reserve Board and the President Biden, announced that the FDIC would in fact back all assets of the banks, even those that are not FDIC insured. While the provides some much-needed relief, this is not a guaranteed outcome if other banks find themselves in trouble.

It is truly important you understand if your bank investments are FDIC insured, or not. The simple rule is FDIC insurance applies up to $250,000. So, if you have more than $250,000 in one bank, you should make sure all of your funds are covered. If they are not covered, you should consider moving them. This is actually $250,000 per registration and that term can get a little tricky, but here is an example:

John Smith individual account = $250,000 = FDIC insured

John and Jane Smith joint account = $250,000 = FDIC insured

Jane Smith individual account = $250,000 = FDIC insured

Or

John and Jane Smith joint account = $500,000

$250,000 FDIC insured, and $250,000 NOT FDIC INSURED

This means that if the bank the John and Jane Smith have their joint account in goes out of business, under current rules, they will only get back $250,000 not $500,000.

IRAs and TOD accounts are their own separate registration, so again if you aren’t sure about your insurance levels, you should be asking. Someone on our team will be happy to discuss this with you and you can always contact your bank directly.



No strategy assures success or protects against loss. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

Are we in a recession? Or is that the wrong question to be asking?

This year is proving to be a hard year for economists to predict. We have never faced a post pandemic economy, recovering from supply chain interruptions, while a significant armed conflict continues for the second year. The last time we had persistently high inflation was in the 70’s and much as has changed since then. There really is very little in history to give us a clue about whether there will be a recession or not this year…. And that makes it tough for investors to sort out what to do.

But are we asking the wrong question? Does it matter if we have a recession? Does it matter how quickly inflation abates? If we take a historic look at the performance of the stock market, while the S&P 500 fell 18% in 2022, back to-back years declines are rare, occurring only three times in the past 86 years. The S&P 500 gained 15%, on average, in the year after its 21 negative calendar years since 1937. Please see the chart below for more details.

The takeaway? For the long-term investor this unsettled time in the economy may present an opportunity. If history is an indicator, whether it is this year or next, the stock market is likely to create an opportunity for gains. As long as you have a long enough time horizon, patience in this situation should prove to be a solid course of action.


Picture source: Morningstar as of 12/31/2022. S&P 500 Index is an unmanaged index of 500 common stocks of large U.S. companies, weighted by market capitalization. An investment cannot be made directly in an index. Past performance does not guarantee future results.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Thank you Structure Cellars Winery https://www.structurewines.com/ for hosting women, wine and wills, and Jennylinglaw https://www.jennylinglaw.com/ for coordinating the evening. We had a great turn out, met some great women, learned a lot and had some excellent wine.

Congratulations to Taeya Lauer for reaching directors club!!

Directors club members are the top 10% of all advisors using the LPL platform. This extraordinary accomplishment is a result of the important work we do every day to make a meaningful impact in the lives of our clients. Taeya’s leadership and unwavering commitment to her clients is inspirational.



Congratulations on this impressive achievement for the second year in a row.. And thank you to our wonderful clients, we couldn’t do it without you.

Happy Groundhog week!

Groundhog Day is a popular North American tradition observed in the United States and Canada on February 2. It derives from the Pennsylvania Dutch superstition that if a groundhog emerges from its burrow on this day and sees its shadow due to clear weather, it will retreat to its den, and winter will go on for six more weeks; if it does not see its shadow because of cloudiness, spring will arrive early.

While the tradition remains popular in the 21st century, studies have found no consistent association between a groundhog seeing its shadow and the subsequent arrival time of spring-like weather.

The weather lore was brought from German-speaking areas where the badger is the forecasting animal. This appears to be an enhanced version of the lore that clear weather on the Christian festival of Candlemas forebodes a prolonged winter.

The Groundhog Day ceremony held at Punxsutawney in western Pennsylvania, centering on a semi-mythical groundhog named Punxsutawney Phil, has become the most frequently attended ceremony. Other cities in the United States and Canada also have adopted the event

At any rate, Groundhog Day serves as a convenient and whimsical milestone to mark the end of the darkest three months of the year, November, December, and January in the Northern Hemisphere. And whether or not Phil sees his shadow, the will be more hours of daylight from this point on.

An invitation for you – women, wine & wills

We are happy to invite you to this free event. Please feel free to pass this on to friends, family, or colleagues…. The more the merrier. RSVP instructions on the flier.

Required Minimum Distribution age change effective January 1, 2023

The secure ACT 2.0 was passed by Congress on December 29th last year and it includes sweeping change for all types of retirement accounts including 401k, 403b, SEP IRA, Simple IRA, Roth and Traditional IRAs. Many of the changes don’t take effect until 2024 and beyond, but there is one BIG item that is effective immediately.
If you own a Traditional IRA you are subject to required minimum distributions, or RMDs. This is the amount the IRS requires you take out of your IRA each year. This amount is calculated using the value of your IRA on December 31st of the previous year and a factor based on your age that is set by the IRS. In the past your RMD began at age 70.5, and then this rule was updated to age 72. Well as of January 1, 2023 the RMD age is now 73.

What does this mean to you?
If you are already taking funds out of your Traditional IRA because you are subject to the RMD requirements, then you need to continue this. But if you have not started taking out funds from your Traditional IRA and you are not yet 73 then you can leave the funds in your Traditional IRA, no required minimum distributions are needed.

What if you turn 73 sometime in 2023?
Then you are required to take your RMD by December 31st, 2023.

How much is it?
For example, if your IRA is $100,000 and you are age 73 your distribution period is 24.7, the math is
$100,000 / 24.70 = $4,048.58
Your distribution period depends on more than just your age and it changes each year, so it is great idea to get your tax advisor or financial advisor to calculate this number for you. Your RMD also applies to ALL of your traditional IRAs, so make sure you count the funds in all of those accounts and 401ks and 403bs that haven’t been rolled over as well.

Are these distributions taxable?
Yes indeed. You may either settle up with the IRS when you do your taxes for 2023 or you can have withholding done when you take out the funds.

Does this apply to Roth IRAs?
No, you can leave those funds invested as long as you like.

“Faith is taking the first step even when you can't see the whole staircase.” ― Martin Luther King Jr.

Today we honor Martin Luther King Jr and thank him for his tireless efforts in the fight for equality, peace and justice for people regardless of their race.

Where is the stock market going so far this year?

• The stock market seems to be looking for its next catalyst to move higher or lower, but there hasn’t been any definitive data either way.
• Headlines point to recession as economic activity, based on incoming data, suggests a slowdown that’s gaining momentum.
• Banks have begun to tighten lending standards that were already fairly conservative. The Philadelphia Reserve Bank of Philadelphia issued a report indicating 15 states already have negative growth.
• Still, despite data pointing to a downturn in personal consumption, there are the anecdotal reports of parking lots filled to capacity as consumers continue to search the aisles for markdowns. But credit card use is rising and consumer saving is declining, so are folks just spending on credit? And how long can that last?
• The Treasury market’s inverted yield curve scenario seemed to unwind somewhat. That certainly would have been a positive move for equities; however, the 3-month Treasury bill relationship with the 10-Year Treasury note has reversed course, and the inversion remains intact. The 3-month, 10-year relationship enjoys a stellar track record in predicting recessions.
• The manufacturers purchasing index is showing a slow down. Perhaps that means that manufacturing is slowing due to a slower demand picture. Maybe supply has finally caught up with demand?
• Q4 earnings season will likely give us a clue about the strength of sales and what companies are forecasting for 2023, and it cannot come fast enough. The guidance from companies offers a broader perspective on what they are seeing from their own customers and clients. This should help markets position more decisively. Positive surprises can help assuage the gloomy atmosphere.
• And then there’s Congress, budget deadlines and a rising debt service level not seen since the post war era in the 1950s. Don’t expect government spending to bail out the economy. But we do expect military spending to remain high as geopolitical conflicts continue.
• All in all 2023 seems to be lacking direction so far and many investors are waiting on the sidelines for a sign one way or the other.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.

At Pacific Coast we strive to keep educating ourselves to better help our clients. This past week Gina and Annie attended an LPL Focus conference in Denver. They enjoyed meeting all kinds of wonderful people in the LPL world. It was a great opportunity to learn more about the economy and Global/Real Estate market.

As the summer finally starts to warm up, it is the perfect time to bring out the AC. We want to give a special thank you to Seatown Electric Plumbing Heating & Air for installing our brand-new Air conditioning. This will not only allow for a cool office but help make our clients feel more comfortable.

On this special day, we want to take a minute to say thank you to all the dads out there. Your hard work doesn't go unnoticed!

We are happy to announce that we will be one of the sponsors for the upcoming West Seattle Grand Parade. Are you looking for something to do this summer? Mark your calendars for July 23rd, 2022 starting at 11am, located in the heart of West Seattle. Hope to see you there!

We want to give a special thanks to Jenny Ling for organizing this Women, Wine and Wills event, as well as the Princess and Bear Winery for hosting. It was a fabulous opportunity to help educate women on wealth management and see all the beautiful smiling faces.

We had so much fun helping out at the West Seattle Food Bank. It was a wonderful opportunity to take a break from our everyday work, come together and help out in our local community. Thank you West Seattle Food Bank for letting us come and volunteer. We met so many great people and can't wait to do it again.

Attending LPL’s Womens Advisor Business Community event…

Keynote starting now. And will be hosting a round table in about an hour.

Enjoyed an excellent panel discussion with these talented women business leaders.

Learning more about the Secure Act and how to help our clients with it.

Wealth Manager, Taeya Lauer is attending a conference to learn more about financial planning & investment management.

Our team enjoyed volunteering at Westside Baby. Part of our mission is to share our talents with the community, and we are so impressed with the great work happening for families at Westside Baby.

Congratulations to Taeya Lauer and her son on his high school graduation.

Congratulations to this spring’s graduates and their families. In a year that posed extraordinary challenges served up by the pandemic your success was hard won.

Thank you to all types of moms out there. We appreciate you!

It’s tax time. Are taxes taking a bite out of your invest returns? We can help.