Personal Financial Planning 13th Edition by Lawrence Gitman,Michael Joehnk,Randy Billingsley

Exercise 17

Carl and Elaine Blankenship together earn approximately $82,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost $150,000.
a. How much of their annual income do you recommend they hold in some form of liquid savings as reserves Explain.
b. How much of their investment portfolio do you recommend they hold in savings and other short-term investment vehicles Explain.
c. How much, in total, should they hold in short-term liquid assets