Reasons Why Senior Citizens Are Encouraged To Establish A Cash Emergency Fund Before Investing
If you asked any investing and finance expert anywhere in the world, they will tell you that establishing a cash emergency fund is one of the main things you should do before investing. A solid cash emergency fund is very critical to all investors especially those who are 65 and above. Life brings with it certain things we least expected and such things can ruin even the best laid investing plan. Regardless of how great your investment is, life can sometimes through at you some situations that need you to use money so save some funds to cover Humana Health Insurance 2020 on here https://www.healthinsurance2020.org
And if you haven’t put some money aside for such emergencies and unexpected situations, you could end up turning to credit cards. If you still haven’t seen the reason why you should have a solid account for emergency, then you should read on.
You can get sick
As you grow older, your immune system weakens, your physical strength declines, and you become less sensitive to thirst, hunger and so on. All these increase your likelihood to develop health conditions and illnesses that could be very expensive to treat and manage. Without a healthy cash emergency fund stuffed away in some savings account somewhere, sickness can prove to be very costly and you might turn to credit cards or start making unplanned withdrawals from your investments. Of course, you have a health insurance cover. However, most health insurance policies are specific and do not cover all illnesses and health conditions. This is why you should have a solid cash emergency fund.
Disaster can strike
Like it or not, disasters are real and they can strike any part of the world at the least expected times. For instance, floods can sweep away your home, earthquake can happen and ruin your car and properties, and other calamities such as strange diseases like Ebola can strike. When a disaster happens and causes damages, you will have to fix what needs to be fixed for life to go on. What if you don’t have a cash emergency fund that you have stowed away in some account? You will have no option but to borrow money and sell some of your investments. In other words, having no cash emergency fund is a sure bet that you will get into debts at some point in your life. I bet starting to struggle with debt is the last thing you want during your twilight years. So, if you want to be successful in investing and you want to avoid turning to credit cards and lenders, then you should establish a healthy cash emergency fund before investing.