Emergency fund first: how much cash is enough?
Three to six months of essential expenses is a common rule, but your job security and dependants may argue for more.
Before investing for the long term, most planners suggest holding a cash buffer so that a car repair or a layoff does not force you to sell at a bad time.
What it means for your portfolio
High-yield savings accounts and short-term Treasury bills currently pay more than 4%, so the cost of holding that cushion is lower than it has been in years.
None of this is a forecast, and past performance does not predict future results. Fees, taxes and time horizon matter at least as much as the product itself, and a plan you can stick with through a bad year usually beats a clever one you abandon.
Three to six months of essential expenses is a common rule, but your job security and dependants may argue for more.
The risks to weigh
This article is for information only and is not investment advice. Figures are illustrative and may be delayed or simulated for demonstration purposes.
Try it: move the yield, watch your numbers
If the 10-year yield were…
Illustrative model · not a quoteFor information only — not investment advice.
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