Liquidity, liquidity, liquidity

Bravepants

AnotherJoe wrote: »

Funetic innit. Its wot they teech now.

I know, but I wonder how they manage to teach it in places like Happisburgh!

Malthusian

ffacoffipawb wrote: »

What 4p extra?

I apologise. It was 3p. (2p on basic rate.)

Paul_the_electrician

I have been building a similiar larger cash buffer, i am self employed so i always have a reasonable safety net anyway

im still investing though, if it all works out ok in the end things are likely to go up

AlanP_2

Knowing nothing about your current sources of income, non-invested savings levels, spending requirements and the like it is difficult to comment specifically.

If I had a fairly low, fixed income that just about covered my regular spend along with a fairly low (or none at all) emergency cash fund then your idea makes sense to me, insurance as you say.

If I had a good income that easily covered my outgoings, an emergency fund in place so that I could cope with a dramatic and fast rise in inflation then I wouldn't want to stockpile more cash for insurance reasons.

Silian

FatherAbraham wrote: »

No.

I'm not making an investment decision.

I'm making an insurance decision.

Investment is what lets one thrive.

Insurance is what lets one survive.

I didn't say you were investing. Just pointed out the rather obvious problem with your plan.

One vote for AlanP's post :money:

Linton

If one has invested sensibly across the world within ones risk acceptance and with the recommended emergency cash savings I dont believe it should be necessary to build a one-off cash pile. However, If one is to amass a large cash pot for insurance against the effects of a bad Exit surely it would be more effective to use foreign currency rather than £s. Or even foreign government bonds.

AnotherJoe

Bravepants wrote: »

Mr Mainwaring...Stupid boy!

Just remembered this

Alexland

If you feel you need a cash buffer emergency fund its a shame you didn't build it up when markets were higher as by stopping contributions now you are missing out on the opportunity to buy lower.

Alex

Thrugelmir

FatherAbraham wrote: »

I woke up this morning to stories about the price of minced beef increasing by 50% in the case of a no-deal Brexit.

It doesn't look good.

Buy UK products. Support the UK agricultural industry. Buy less meat and eat vegetables instead.

FatherAbraham

Alexland wrote: »

If you feel you need a cash buffer emergency fund its a shame you didn't build it up when markets were higher as by stopping contributions now you are missing out on the opportunity to buy lower.

Alex

The lost investment opportunity will be peanuts in the grand scheme of things.

However, having an extra thousand pounds (or whatever) of liquidity at the time of a possible shortage of resources may prove to be a very useful defence against having to liquidate investment assets when prices are low.

Liquidity insurance.

Apparently few people here think much of it.