Within your investment portfolio, you may have a cash management account. And in the years before you retire, you may want to build this account to help pay for emergency expenses, short-term goals or your everyday spending.
First of all, you can draw from a cash management account to pay for unexpected expenses, such as a major car repair. This will help you avoid dipping into your long-term accounts.
Second, you can save for a short-term goal, such as a home remodeling project. Think about moving some funds to your cash account within a year or two of your planned expense.
And finally, you can increase your comfort level in your portfolio because the funds in your cash management account are quite stable and are less subject to movements in the financial markets. So, having an appropriate amount of spendable cash in this account can help reduce the stress of market volatility.
Your cash management account is important at every point in your life, but it may take on even greater meaning when you’re retired – so do whatever you can to keep it in good shape.
This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.