In view of the current market turbulence, every investor should check whether their own asset structure is well positioned to weather a potential storm.
As no one can predict the future, the best advice is to ensure that you have a sufficient liquidity buffer for eventualities. You can think of the liquidity buffer like an airbag in a car - in the event of an accident, it protects you from the worst.
How do you go about planning a liquidity buffer?
Careful liquidity planning for the coming years is crucial. On this basis, the required liquidity buffer can be calculated for each individual asset situation. For some, a cash buffer of 5% is sufficient. For others, the recommended buffer may be 30% - consisting of cash and bonds.
Liquidity control is complete for Wealth Office clients
This liquidity buffer analysis was carried out last month for all our Wealth Office clients. No action was required for 85% of clients. The situation has since been discussed with the remaining 15% of clients and adjustments have been initiated. No matter what happens, they are adequately protected and do not run the risk of having to sell shares at the worst possible time.
What about your financial airbag?
Start a free liquidity check now and find out whether your wealth plan is crisis-proof.
