March 17, 2015
Some advisors are rethinking the classic cash emergency fund, arguing it’s a poor use of client assets. Do you think it’s old-fashioned to keep a pile of cash on hand?
|No. Every client needs at least a year’s worth of expenses in ultra-liquid funds.|
|Yes. The opportunity cost of sidelining assets outweighs the risk of having to liquidate them.|
|It depends on the client’s profile, including job security, tax bracket and age.|
|The Client - Finding and winning new clients||The Client - Client retention|
|The Client - ERISA plans/institutional management||The Client - Behavioral finance|