Emergency Fund Planning

An emergency fund is usually a separate account that you maintain to meet unexpected and important short-term needs such as a car repair or a new appliance. Investments that are well-suited for an emergency fund, include savings accounts, money market accounts and short-term certificates of deposit (CDs).

Why is an emergency fund necessary?

Emergency funds are established to minimize the effect of an unexpected event such as a temporary job loss or a reduction in income. It is not intended to meet anticipated expenses such as property taxes, college tuition, or a vacation.

In difficult times, you do not want to be put in a position to sell assets at a reduced value.

How large of an emergency fund do I need?

Your emergency fund should reflect your own personal situation. While there are general guidelines, you should adjust them to reflect your personal circumstances. You should consider your job security, and the health of you and your family when deciding on the amount of your cash reserve. The starting point in your evaluation can be to assess a reserve of three months of regular living expenses. You will need to review this requirement when major events in your life occur such as the birth of a child or a change in employment.

As part of your personal financial plan, your Ziegler financial advisor will help determine how large your emergency fund should be, create a strategy for savings, and determine which investments should be used for your fund.

Our planning services are not financial planning (unless they are specifically called investment consulting services). They do not create an investment advisory or a fiduciary relationship (including under ERISA) between you and B.C. Ziegler and Company. B.C. Ziegler and Company will prepare a financial plan at your specific request through NaviPlan.

Investment consulting services are offered at B.C. Ziegler and Company only through investment advisory programs and are not available through traditional brokerage accounts and products. Please speak with a Ziegler Wealth Management financial advisor to further discuss the differences between brokerage and advisory products offered by B.C. Ziegler and Company.