investing

Factor your job into investment planning

Prepare for the worst-case scenario
Next
Slide 3 of 6
Previous
Prepare for the worst-case scenario

If you have a high layoff risk, beef up your emergency fund.

"A solid financial plan should call for between three (months') and six months' of cash reserves -- six months if you're in a shaky position, three months if you're in a pretty confident position," Heller says. "Then what you do with your investments after that shouldn't matter as much."

But Nangle says many financial advisers recommend raising that minimum to a year's worth, though she acknowledges that, in today's economy, many workers struggle to build up even a six-month reserve.

"I think you're seeing planners recommending a larger emergency fund depending on the types of risks that the client is facing," Nangle says.


Next
Slide 3 of 6
Previous

 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement

CDs and Investment

Can heirs cash an old trust?

Dear Dr. Don, The youngest of 6 children, I am 48 years old. My father joined the Navy at 22. In Italy, he met his bride and my mother, and returned to the U.S. to raise our family. In 1959, he bought a trust certificate... Read more

advertisement

Blog

Mark Hamrick

Investors brace for election uncertainty

Markets don't like uncertainty, and a Trump win for the presidency would seem more conducive to unpredictability than a Clinton victory would.  ... Read more


Connect with us