Where to hold Cash Reserves

7 Replies

Where do most of you all place your cash reserves for repairs? Stock market, savings accounts, cd’s etc? Is the stock market too risky for your reserves or does it make sense in order for growth potential?

Nothing beats a high cash value whole life insurance policy from a mutual insurance company like Security Mutual for cash reserves. It does take a couple years to start pumping so it's not an overnight solution, but when the policy is going, it's impossible to beat.

@Allen Wu are you saying you keep 12 months worth of reserves? If you don’t mind me asking, how many units do you have and do you keep 12 months of reserves for each unit? Would you consider 6 months of reserves too low to start with on a unit? Thanks

Originally posted by @John Osborne :

@Allen Wu are you saying you keep 12 months worth of reserves? If you don’t mind me asking, how many units do you have and do you keep 12 months of reserves for each unit? Would you consider 6 months of reserves too low to start with on a unit? Thanks

6 units, 4 of which are at 12 months. Other two 6 months. COVID burned a lot of investors so want to shore reserves for worst.