(keeping €20K as emergency fund)
On what basis?Personally, I would keep a higher cash reserve than €20k in your circumstances - I would keep at least €50k in cash.
Bear in mind that many income protection policies are poor value for money, involve large charges, and only pay out in restricted circumstances and for limited time periods.I would also echo the point about the need for income protection cover.
Well, it’s roughly 12 months’ expenditure for this family. Personally, I don’t think that’s an excessive cash reserve.On what basis?
Income protection is certainly expensive but, in my opinion, it’s critical in the OP’s circumstances.Bear in mind that many income protection policies are poor value for money, involve large charges, and only pay out in restricted circumstances and for limited time periods.
If the OP does lose his/her job and is entitled to the dole and has no mortgage I'm sure an emergency fund of 20k should do for a year. They're not going to be dining in the Ritz in that scenario. Ultimately though it's up to the OP to decide what they are comfortable with.Well, it’s roughly 12 months’ expenditure for this family. Personally, I don’t think that’s an excessive cash reserve.
Let’s say we have a really grim recession, the OP loses his job and the value of global equities falls by 50%+. The OP would have to realise huge losses by liquidating equities just to survive.
Well, it’s roughly 12 months’ expenditure for this family. Personally, I don’t think that’s an excessive cash reserve.
Let’s say we have a really grim recession, the OP loses his job and the value of global equities falls by 50%+. The OP would have to realise huge losses by liquidating equities just to survive.
Income protection is certainly expensive but, in my opinion, it’s critical in the OP’s circumstances.
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