Asset Management

Orientation Essentials

InfoMinute Seminar

A question I get often is "How much cash should I have on hand in case of emergencies"?
This largerly depends on the client or prospects individual situation &amp; also reflects the client's overall feeling about risk.&nbsp; We refer to Emergency Funds as "Runways", the larger your emergency fund is the more runway you have &amp; the smaller your emergency fund is the less runway you have.&nbsp; When you run out of Runway, you're in trouble, typically meaning that you are borrowing money (Credit Card's, Personal Loans) to pay for your expenses.&nbsp; This can be detrimental to a clients financial situation.
<ul>
<li>At a minimun, if your income is stable &amp; secure we recommend having 3 months of your monthly expenses saved as a cash reserve.&nbsp;&nbsp;</li>
<li>If your income is largely variable, we would recommend assessing if a 6-12 month cash reserve is appriopriate.&nbsp;</li>
</ul>

There is always more than one right answer to a question – which is why questions on a FeedForward Card create a series of InfoMinutes, not a single, simple, response.
<ul>
<li>Share a question you received, then explain why there are two distinct answers based on size or amount.&nbsp;</li>
<li>Include the situation where each answer would be appropriate.</li>
</ul>

Christopher Rowe

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