Everyone agrees that a rainy day fund is necessary. But beyond the money to cover living expenses for six, nine or 12 months in a separate emergency fund, how much cash should your clients hold? In particular, how much cash should they hold in their portfolios?

Planner Robert Wander of Wander Financial Services in New York City notes that the individual client’s circumstances will determine the actual percentage. People planning to buy a home within the next two years or fearing the loss of a job are advised to hold more cash.

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