Firstly, there will be times when a client prefers to hold a cash position with all or some of their investments. This may be due to the planning of taking an income or, as is the case at the moment, wish to remain safe with their investments for a time. Secondly, it is to ensure that there are funds to pay the charges.
When our portfolios are set up they always include a minimum of 2% as a cash balance. This is to ensure that there is cash available to pay to fees associated with the plan and service.
As charges are taken from the cash balance the level of ‘cash’ within the portfolio drops. This can then be pushed back up to the required level, through either receipt of income payments from investments and or, a regular automatic rebalance.
Any clients who would like some further information please contact us. Anyone interested in Transact please call us on 081 271 1280 or e-mail info@reevesifa.com
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Expert Wealth Management Services online has worked with thousands of people in every industry and has seen first hand what can happen when a person is not careful with their money.
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