GRAND RAPIDS, Mich. (WOOD) — The collapse of two U.S. banks in the past week have sparked financial fears, but a Michigan wealth management partner is telling his clients not to let fear guide their decisions.

“We’re telling them to not panic. I think that’s the No. 1 thing, is to not panic, take a step back and try to understand what’s going on and what your risks truly are,” said Brian Nemes, a partner at Nemes Rush Family Wealth Management in Novi.

The Federal Deposit Insurance Corporation protects deposits of $250,000 or less. Nemes said if you have a bank balance at or below that amount, your money should be safe.

If you’ve already pulled money out of a bank fearing collapse, Nemes said there are alternative investment options like money market funds or short-term treasury bonds that rely on the claimed stability of the federal government. Precious metals, bonds and exchange traded funds are also ways to invest. But it all depends on your situation.

“I would tell people that are looking at those options as alternatives to cash deposits in banks. I’d encourage them to look at what the risks are and increased risks in those categories,” said Nemes.

While gold and precious metals may do well during uncertain times, you may see large drops in values when fear subsides. Bond risk depends on the type and who is issuing them, as well as the possibility they’ll drop value as interest rates rise, Nemes said.

“You could potentially be taking money out of a bank that may or may not have risk to it but you have that FDIC insurance and putting it into an investment where you have the potential for actual loss down the road,” he said.

When it comes to retirement funds, Nemes said play it safe and steady.

“Don’t let fear guide your decisions right now. Keep a long-term focus on what you’re going to need to do for the long term throughout retirement,” he advised.

Nemes believes the bank failures are not systemic and will pass.

“Understanding that these type of events that we’re going through right now, they occur, but they will pass and that over time the markets will rebound, that things will stabilize.” Nemes said. “If you have the ability to stay through that process, through that time period, you should and not get caught up with the daily fear that we see in the media right now.”