Cash reserves matter in two ways

Cash reserves matter in two ways.
The first is your personal buffer. A healthy amount sitting in a high interest savings account at home. Rob calls it the big soft fluffy pillow. It means you can pay for a holiday, handle an unexpected cost, and sleep at night without calling your financial adviser.
The second is inside super. Having two to five years worth of pension payments held in cash means the share market can correct, crash, or do whatever it wants and you do not need to sell a thing. Your income is already there, bucketed and ready.
Good cash reserves let you ignore the noise and allow your investments to keep growing.
General Advice Only. Robert Goudie is an Authorised Representative (No. 235974) of Consortium Private Wealth Pty (AFS Licence 495401).