A common personal investing rule is to always have the value of six to nine months of living expenses in cash or cash equivalents before you begin investing. This makes sense because investment accounts typically fluctuate in value. This rule will help make sure that next month’s rent and grocery money is not subject to a 30% decline in value. What is a cash equivalent? It is a “cash-like” asset; its value stays at or near what you paid for it regardless of what is happening in the economy and the financial markets. Examples include short term bonds and money market accounts. Your … [Read more...]









