Reply to How much of net worth should be invested vs. kept liquid?

Forum Index » Money and Finances

Reply to "How much of net worth should be invested vs. kept liquid?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]My rule of thumb that I tell my clients is to have 3 months worth of expenses saved, in cash, in a rainy day fund (aka savings account).  All other should be put to work for you because it's not like your investments aren't illiquid.  This is obviously based upon current market conditions being a bull market.  Cash or cash-equivalents are paying you tenths of % points in this monetary environment so inflation is causing you to lose value on your savings.

Put it to work for you.[/quote

Agree but my extra is sitting in cash right now waiting for a correction so I can put in equities.  I know you shouldn't try & time the market but I'd like to avoid buying high.

What do u think?[/quote]

Very valid point and concern.  Kind of an odd market scenario right now that virtually everything is overvalued but showing no signs of stopping.  Someone recently came on CNBC and said that he is witnessing a tech bubble but I'm not certain I agree.  No one knows if/when the correction that everyone fears is coming so I am still telling people to be in the market (especially since it's earnings season right now) but be, or have your FA be, on top of things in regards to being able to be on the sidelines if things turn.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics