The role of cash in your wealth plan
Strategic solutions available
Consider the important role cash plays in your current and future life. Effectively managing cash is vital to meeting your financial goals.
You may be saving for a large purchase. You may have cash on hand to protect against unforeseen events, such as an unexpected home repair or a job loss. Cash also plays a role in your investment portfolio. Your portfolio allocation to cash and cash-like products typically changes over time - depending on your risk tolerance, investment time horizon and whether you are near retirement or already retired.
Here are three key reasons to discuss your current and future cash needs with me as your financial advisor:
1. Cash management
What are your current household expenses? If you’re retired or depend on your portfolio for a portion of your income, using cash management solutions can offer efficient access to your cash and help smooth out your income stream.
Holding sufficient cash may help you prepare for the unexpected such as a major repair, a medical emergency or perhaps a job or business loss. In addition, if you’re retired or depend on portfolio income, many financial professionals recommend having six months to two years of spending needs allocated to cash, which may help protect against market volatility or being forced to sell investments at an inopportune time.
Allocating a portion of your portfolio to cash gives you the liquidity necessary to move quickly when an investment or business opportunity presents itself. RBC Wealth Management offers several cash management services to help you enjoy the benefits of your wealth when and how you need it.