Cash Planning – How Much Cash Should You Have on Hand?

HK Financial Services

Cash needs will vary with stages of life, the stability of income, future uses for the cash, and how cash fits into your overall portfolio allocation.  If you are holding what seems like a lot of cash, or are retiring soon, you may want to carefully consider how much cash you realistically can afford to hold.

Cash for Emergency Fund – Working Years

This is the minimum amount of cash to have on hand during one’s working years.  It generally represents the amount of money you would need to pay the bills if you lost your job, at least until you could reasonably expect to find a new one.  The “standard rules” for how much to have in cash:

  • Three months of expenses for a younger single person (renting, living at home)
  • Six months of expenses for an established single person (mortgage, car payment)
  • Three months of expenses for a two-earner family
  • Six months of expenses for a single-earner family

Subscribe and read more:  HKFS blog

Author: Suzanne TudorCFP®, J.D.*, MBA, Director of Financial Planning, HK Financial Services

Investment advisory services offered through HK Financial Services (HKFS), an Independent Registered Investment Advisor. Commission-based securities products are sold by ProEquities registered representatives and offered through ProEquities, Inc., a Registered Broker-Dealer and member of FINRA and SIPC. Insurance products issued by many highly rated carriers. HKFS, ProEquities and Boyum Barenscheer, PLLP are independent of each other.

This material is being provided for informational purposes only with the understanding that neither HKFS nor ProEquities is rendering tax, legal or accounting advice. Please consult with your CPA or other appropriate advisors on all matters pertaining to legal, accounting or tax obligations and requirements. 8271851


Financial Market Recap - Week Ending March 8, 2019


The 2018 Gift Tax Return Deadline is Almost Here