Emergency Fund To The Rescue
When dealing with a new client the first thing I review might be a surprise. Is it there asset allocation? Not first. Is it the overall beta of the portfolio? Nope not that either. Well it must be the overall strength of their holdings, right? Strike three. Believe it or not, the first item I review is to make sure they have enough money in their emergency fund.
How Much is Enough for an Emergency Fund?
Typically, 3 to 6 months of expenses is the norm. But in a day an age where credit cards are rampant and the housing mess has hurt many families, I would recommend having at least 8 months worth of expenses. Some planners may even suggest up to 12 months. If you have a job that is sales oriented and commission driven, you should be more on the 12 month side. By […]
