Fact or Fiction We can work with you to integrate a cash reserve into your financial plan

Your Vision
Accessing cash in an emergency
Amy’s current financial plan addresses all her long-term goals, including retirement and college for her children. In addition to her tax-advantaged accounts, Amy invests regularly in several stocks. What her financial plan doesn’t account for, though, are Amy’s short-term goals, including any potential “emergency” cash needs. Amy always uses her bank checking account to meet her day-to-day living expenses and other cash requirements. But recently, an unexpected and large home-repair bill caused Amy to review her short-term savings habits. Because she did not have a cash reserve, Amy was forced to sell some shares—and disrupt her long-term savings plan—to pay for the home repair.

Our Insight
Having the liquid reserves to meet unexpected or emergency cash needs can help keep Amy's long-term investment plan on track. Her First Western wealth planning advisor will

  • Review her financial situation
  • Recommend an appropriate cash reserve (usually three to six months worth of living expenses)
  • Recommend the most appropriate investment vehicle (LOC, money market account or CD) for the emergency fund. As investors, we often focus on our long-term goals and the investment strategies designed to help us achieve those goals. We rarely think of “cash” as part of an investment plan. Nevertheless, a cash reserve is an important component of a well-rounded financial plan. For more information on cash management solutions from First Western Trust Bank, please give us a call.

    The foregoing discussion is general in nature, is intended for informational purposes only and is not intended to provide specific advice or recommendations for any individual or organization. Because the facts and circumstances surrounding each situation differ, you should consult your attorney, tax advisor or other professional advisor for advice on your particular situation.

    Investment Management products and services are: not FDIC insured; not obligations of the institution; have no bank guarantee; may lose value; not a deposit; no federal government guarantee.

    Life Insurance products and services are: not a deposit; not FDIC insured; not obligations of the institution; have no bank guarantee; may lose value.

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