How Much Cash Should I Hold?
During this time of economic uncertainty, many people are questioning what they should be doing with their money. In this episode of The Cautious Investor, Jean Daley, private client associate with W3 Wealth Management in Warren, explains why the first and foremost question to consider is: “How much cash should I hold?”
“Generally, you should have enough cash on hand to cover three to six months of living expenses,” Daley says. “It’s important to have this money stockpiled in case, for any reason, your normal cash inflow is disrupted.”
Short term financial goals, such as home improvements or travel, are another factor to consider funding with cash. “You wouldn’t want to subject that money to market volatility, in case the cash becomes needed during adverse market conditions,” Daley says. “It’s best to go with the safe, boring option of holding cash rather than gamble with your emergency fund.”
W3 Wealth Management, LLC is a total financial planning firm. And when we say total, we mean it. W3 has assembled a team of accredited advisors including certified financial planners, CPA’s, attorneys, CLU’s and ChFC’s to assure all your financial affairs are working in tandem.
Copyright 2020 The Business Journal, Youngstown, Ohio.