Are You Prepared for a Financial Emergency?
- December 30, 2019
Life is full of unexpected events, both good and bad. To be prepared for these events, it is important that your finances incorporate a plan for emergency and unexpected events, without having to use up funds from other investments or savings.
Cash Flow Management
Cash flow management is a way for you to plan for the unplanned. Your cash flow management allows for your investments to be uninterrupted during these events. This means you won’t have to tap into your retirement savings or other long-term assets to have the means to cover the emergency event.
Setting up an Emergency Account
In your cash flow strategy, setting up an emergency account, in addition to other cash assets, allows you access to funds for the purpose of an unexpected need, at no threat to your other savings and investments. The emergency account should have enough assets to cover three to six months of regular expenses. Over time you can add to this account and build up its value.
Financial Planning for the Unexpected
The most challenging part about planning for the unexpected is the fact that it is unknown in terms of timing and event features. Depending on the different factors that make up your risk tolerance, your financial emergency plans may look different.
Contact your Oppenheimer Financial Advisor to discuss how you can plan for unexpected emergencies and incorporating measures to help ensure you are able to withstand these moments. Our Financial Advisors act in your best interest and can help you understand your financial outlook for both the expected and unexpected.
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