I am sure many have a significant part of their net worth tied in various equity and bond instruments including money market funds at various brokerages. Most of the funds are independently managed and so one fund cannot take out another. We also place a lot of trust in using money market funds for going to cash if the markets were to meltdown.
What if unforseen circumstances shutdown the liquidity/access of all of these instruments and the actual value of what they would be unpredictable until the crisis blew over which may take months or a year or more.
Do you have financial contingency/evacuation plan to weather such a situation for as long as it takes? Not talking about doomsday scenarios where you need ammo and your own plot of land. Imagine a financial virus/hacking that brings all trading and brokerages to a halt until they can figure out how to get things back to normal and no one knows what the value of your holdings will be when they do.
Serious question.
Comments
I have a sum equal to ninety days of cash demands stashed. In addition, I am carrying about three years of cash needs in my savings, bank and brokerage accounts. Plus my portfolio’s distribution yield is equal to about one year of my cash requirements. Then factoring in my wife’s pension and our social security income … I am thinking we are in good shape. My pension is what I can make out of the markets. We have no debt ... but, my largest single expense is property taxes. And, I am in the process of reducing the amount of land and property owned. The immediate area around my home is "posted" fenced and the fence can be electrified and pad locked if warranted. Then there is a home protection system in place including an alarm system, stand by generation plus a few good old boy "southern" protection measures I'll keep quite about. We keep an ample supply of food (couple weeks) plus plenty of bottled water on hand, etc.
I have not had a problem with thives as they usually take from the softer targets around us.
And, yes homes around us have been broken into. This caused us through the years to better secure our own property.
And hank, just encapsulate a M-80 inside a piece of that fire wood ... and, they want take it but one time. My late grand father did this, years back, and they stopped pillaging his wood pile. Get you an electric fence transformer and wire the door knobs on your garage or even your fence as I did but make sure you post your property "No Tresspassing" including "Danger High Voltage" signs. I have found, they seem to get the message if they are not wearing gloves. And, if they should use comando measures to cut through or come over the fence ... then there is the home defense system which includes doberman, motion dectors, lighting and security cameras and perhaps a few other good old boy measures.
There is a bell at the entrance to my driveway ... and, on the post of the bell there is a sign that reads for "Help" ring the bell. The problem with this though is at times kids/teenagers come by and ring it from time-to-time. Our response ... Do you need 911?
Old_Skeet
Here's more. Lose your power grid and life as we know it ceases. Sure - ya got a generator. What ya gonna run it on? Gas stations pumps won't operate without electricity. A big propane tank would run you for awhile, but not indefinitely. Most home heating won't work without electricity either,
Two - four weeks of provisions such as spare water, a discrete source of fuel; propane tank, deisel storage. A cord of wood for heat and light. Spare batteries to operated devices like; flashlights, radios, remote for propane fired fireplace. Candles for low level light (and snuggle alerts). Unrefrigerated food; peanut butter, canned tuna, crackers, chocolate, beer or wine. Things to occupy your time; like books to read, board games to play, friends and family to spin a story with. I have spent months at a time in my life on remote islands off the coast of Maine, the Keys and Puget Sound. Three months on my bicycle traveling across the country with everything that I needed stored on these two wheels.
Don't get me wrong, we all we need to replenish our stores, return to our electronic devices, check our threads here at MFO. But I known enough old timers who relate stories of the depression and WWII and the disruptions to normal life that became normal life. They adjusted to living with less...a lot less... and gave the little that they had to give to their country and to their community.
These moments of "stress" provide a rare opportunity to experience life in a much simpler way that sprouts new leaves on the tree of your life.
Cords of wood, racks of wine, cases of homebrew, a faithful dog, and most importantly an open heart and hearth.
All ready!
Some cash on hand is probably a good idea. And diversify investments as broadly as you can. Having a pension or annuity is one type of "invested" asset. Stocks and bonds are another. Tangibles like a home, land, art, antiques, coins, etc. comprise still another form.
I also believe in diversifying among various brokerages or fund houses. Most, I suspect, would disagree on the need for that.