FYI: MOST AMERICAN families are living paycheck to paycheck. This was highlighted by the recent government shutdown. Many federal workers quickly found themselves in financial trouble, when they didn’t receive their regular pay. In fact, a Federal Reserve survey found that four out of 10 Americans either couldn’t cover a $400 emergency or, to do so, would need to borrow or sell something.
That brings us to a question I’m often asked: Why do financial advisors insist clients establish an emergency fund? After all, that cash will likely sit in a low-interest checking or savings account, where it lags behind inflation. You might be wondering whether the money could be put to better use by, say, paying down debt or investing through a brokerage account.
Regards,
Ted
https://humbledollar.com/2019/04/cash-is-king/
