![]() In an ideal world, your emergency fund should offer you a margin of safety that will allow you to hold on to your current portfolio assets and give you the cushion you need to ride out volatility. Thus, having four months of expenses might not cover your needs. ![]() ![]() Fluctuations in the labor market and desired skill sets have the potential to extend a job search. However, this doesn’t always take into account ever-changing, real-life factors. Typically, emergency funds cover approximately three to six months of expenses. Note what could get cut, if necessary, when you’re facing financial hardship. This number can serve as a base and allows you to take a critical eye to your expenses. But go beyond those and understand the amount of money you’d need each month to keep living comfortably over a period of months or even years. You probably have a general estimate of your necessary bills: mortgage, food and utilities. How do you ensure you’re able to focus on liquidity during turbulent times? With a little bit of planning, you can create a lasting strategy that can help meet your needs.Īn essential first step is knowing how much you spend each month. But with a Liquidity strategy in place, you can help mitigate this risk and maintain your lifestyle in the short term until you get back on your feet. ![]() It doesn't take much for a financial challenge to arise-maybe a failed business venture, unexpected medical bills or a drop in the stock market. While it’s critical to focus on the long term when it comes to investments, a Liquidity strategy-which is designed to provide short-term cash flow and act as a buffer against financial distress-is equally important during a volatile market. With an up-and-down market, unexpected changes can cause stress and lead to poor decision-making. Burish, Founder and Managing Director at The Burish GroupĪ good long-term investment strategy means staying the course when times get tough. That being the stand taken by UBS, Hansen’s direct approaches to UBS through written complaints had, unsurprisingly, been met by denial of any wrongdoing.By: Andrew D. They claim that even at that stage they did it “against Burish’s advice.”Ĭlassifying them as ‘sophisticated investors’ with an understanding and tolerance of associated risks, a UBS spokesman said that “The claimants…had previously engaged in short-selling and were aware of the risks and potential rewards of this strategy,” and that “The claimants confirmed to UBS that they were willing to accept those risks.” Hansen and his wife finally covered their shorts in July 2020 and exited the positions they had taken in Tesla. In hindsight, a short-selling strategy in the stock was likely to come a-cropper. The per-share price, since then, has skyrocketed to $720. The claimants have argued that “His recommendation focused on his conviction that lots of money would be made because Tesla common stock was overvalued and certain to lose its value,” and that “No balanced view of the risk of loss was provided by Burish.”įor the record, the Tesla stock was trading at $60 in early 2019. Short-selling is a strategy that seeks to profit from a decline in the price of the stock being considered. The losses, and claim, arising from the short-selling of Tesla stock that Burish has been repeatedly promoting in 20. The other people in the family who lost money are their three children and their spouses.īoth Hansen and Simmons Perrine Moyer Bergman’s Cedar Rapids, Iowa-based lawyer Paul Gamez, who is representing the claimants, have not commented on the story. Hansen, along with his wife, lost the largest amount, $16.5 million. The family includes Dennis Hansen, the CEO and owner of a torque-convertor maker in New Hampton by the name of Precision and a manufacturer of automatic flushing systems for oil coolers and heat exchanges by the name of HotFlush, Inc., as gleaned from his LinkedIn profile. ![]() The claim specifies that the $23 million loss was incurred by a set of four couples who are part of an extended family and one other investor. Punitive damages and costs claimed apart from the $23 million are unspecified. In addition, UBS has been accused of failing to supervise its brokers. An arbitration claim filed with the Financial Industry Regulatory Authority (FINRA) has asked for $23 million in damages and has accused brokerage firm UBS and its financial advisor Andrew Burish of violation of suitability guidelines of FINRA as well as breach of fiduciary duty. ![]()
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