For many of us, this past holiday season didn’t unfold quite the way we had hoped. What we expected to be a time of rest and restoration was instead marked by sickness, cancelled plans, and a general sense of being worn down. It was a good reminder that life doesn’t always follow the schedule we set for it.
Moments like that have a way of clarifying what actually matters. They also highlight something we talk about often with clients: the importance of having reserves.
People often think of reserves in financial terms, but they exist in many forms: energy, time, health, emotional bandwidth, cash. When those reserves are healthy, unexpected disruptions feel manageable. When they’re depleted, even small issues can feel heavier than they should.
This is one of the reasons we are so intentional about how we manage cash, especially for clients who are taking income from their portfolios. We have committed to keeping roughly two years of planned distributions in high yield cash. Having that reserve allows us to meet spending needs without selling investments at inconvenient times and gives long-term investments the space they need to do their work without interference. It also, and perhaps most importantly, reduces stress during periods of market volatility.
In many ways, the same principle applies outside of finances. The people who navigate difficult seasons best aren’t the ones who avoid disruption altogether, they’re the ones who’ve built enough margin into their lives to absorb it when it comes. As we move further into the new year, it’s worth reflecting on where your own reserves stand. Financially, yes, but also personally. Rest, health, flexibility, and margin matter more than we often realize.
When life inevitably interrupts our plans, having a little extra set aside can make all the difference.
Eric Puckett