I am preparing for Global Recession, Be cash rich
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 Sep 17 2011, 07:28 PM
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#1
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2,656 posts Joined: Nov 2004 
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QUOTE(howszat @ Sep 17 2011, 07:23 PM) Why is it excluded from the investment portfolio? EMERGENCY fund is not investment per se.All you need to do is to allocate it to the asset classes that do not go through long economic cycles, like properties, etc  if you need money one day, where would you source it from? selling their illiquid, immovable property? at discount? |
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Sep 17 2011, 07:51 PM
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#2
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Senior Member
2,656 posts Joined: Nov 2004
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QUOTE(howszat @ Sep 17 2011, 07:37 PM) No, it's not simple - it's silly. What's your examples of less liquid funds? would it still be the same amount when you withdraw at the case of emergency? or would it be with drawable by then? You don't need to keep all 2 years as emergency, ie liquid funds. You could for example, keep 6 months in cash, 6 months in less liquid funds, 1 year in even less liquid funds that you can withdraw in a years time. Probably dreamer have no faith with any financial system in the world. Therefore, having his emergency fund in forms of cash would be the most secured way with quickest withdraw ability, no penalty and guaranteed sum at any point of time. |
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