Savings

How much cash should I have ?

How much cash should I have ?

Q: I’m trying to figure out how much cash I should have in my portfolio. I have been told to have a six-month emergency reserve. Are there other reasons I should have cash?

A: When we talk about cash, we usually refer to money held at the bank in checking or savings accounts or held in certificates of deposit. Cash also refers to instruments like money market funds or treasury bills held in brokerage accounts or retirement plan accounts.