How Much Cash Should You Have on Hand?
How much cash should you have on hand? The answer is: "Enough to accomplish your short and long-term goals". Here are several factors we take into consideration with our clients in determining how much cash reserves they need to hold:
1. Are you retired or still working?
2. Do you have assets that require upkeep and maintenance or pay property taxes?
3. What kind of insurance coverage do you have to protect yourself in the event of various emergencies?
4. Do you have dependents that you support, or might need to?
5. Are you self-employed?
6. How is your portfolio allocated?
7. How stable is your income stream?
8. What emotional factors might need to be considered?
9. What are your travel plans?
10. Do you easy access to assets that can be liquidated to raise cash quickly?
This list is not exhaustive but it's a good place to start. Every family is different and they deserve advice that is tailored to their needs.