Tax and Money Tip of the Week
Money Tip – Investing 101
September 28, 2011 | No. 62

This week we have a very important tip on investing concepts.

This series is not intended as investment advice, but only a general discussion of investing in the new millennium and in the age of the Internet, High Frequency Trading, and Machines.

Considering all the volatility over the last few weeks, here are some thoughts to consider investing today, that our parents may not have taught us.

Here’s a lesson that the 2008-2009 Great Recession taught a lot of people:

KEY LESSON:
Learn what Liquidity (or have a lot of cash or money markets available) means.  And know where this money exists and have access to it: to pay your bills, meet obligations, and the unexpected.

RECOMMENDED:
Classic certified financial planning advice says you should have 9 months of your monthly obligations of cash at a minimum in safe places, easily accessible.  We like to see 12 months of cash reserves.

More on investing next week.

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
mark@markvitekcpa.com

…until next week.