This week, I’m talking about how I invest my money as a financial advisor. 

Today, I’m talking about how much I have in cash as a financial advisor. 

The standard advice is that you should have 3 to 6 months worth of living expenses in cash for emergencies. This has become even more important during the pandemic with widespread layoffs and unemployment benefits that were slow to pay out in many cases. 

Having a cushion of 3-6 months living expenses in savings will keep you from having to pay for emergencies or even put basic living expenses on a credit card when the inevitable emergency happens or if/when a job loss occurs. 

For that reason, my husband and I (both being savers) have always tried to maintain a cash balance that was consistent with this recommendation. We typically maintain about 5 months of living expenses in cash. Because of our adherence to this recommendation, we haven’t yet had to put a roof leak repair, or medical  bills, or any other emergency expense on a high interest credit card, which is the goal of having savings in the first place - to make sure you can cover life’s inevitable setbacks without making things worse for yourself and your family financially. 

That’s it for today, but one last thing before you go...I have an amazing free tool for you to help you on your path to retirement. It’s called the Retirement Success Forecaster.

Using data from a simple questionnaire, the retirement success forecaster will tell you if you’re on track for retirement, and if you’re not on track, it will pinpoint exactly what adjustments you can make today to live the retirement you envision.  

Getting a customized retirement forecast is easy. Just go to www.truenorthra.com/retirementsuccess/ to download your forecaster questionnaire. Fill it out, send it back to me using the instructions in the forecaster, and I’ll send your personalized results for free - no strings attached. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.

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