For a variety of reasons our clients often have short-term needs for cash, for example,the purchase of a car, house, wedding, etc. Additionally, many of our clients are retired and, particularly in the early stages of a retirement, it is best to avoid drawing income from an asset that may be experiencing a period of downside volatility.

Therefore, we maintain a cash wedge in client portfolios. This varies and may be between 1-3 years of income. The cash wedge is composed of liquid securities with no or very limited volatility.