Many financial planners recommend that you hold emergency reserve assets equal to ________ months of after-tax income.

Question

Quizplus · Accepted Answer

Holding emergency reserve assets equal to 3-6 months of after-tax income is a common recommendation among financial planners. This amount allows for unexpected expenses or job loss without depleting all savings or having to rely on credit cards or loans. Holding more than 6 months' worth of income in emergency reserves may be unnecessary and can result in missed investment opportunities.

Many Financial Planners Recommend That You Hold Emergency Reserve Assets