Let's talk about how to utilize your portfolio when you lose your job or other life events come up. It is important to think about and plan how you will use your assets before your personal emergency happens. We work hard to save and when we are out of a job or having to spend our assets in a stressful time it is good to follow a well defined process. Greshams law discusses the economic concept that we tend to spend bad money before good money. This applies to us when we are spending from our portfolio. We need to consider what assets we value the most and spend those last. For most of us that will mean we spend the cash in our checking and savings accounts, then sell an securities in our brokerage account. After exhausting any funds there we will resort to selling gold and silver bullion before raiding our retirement accounts. Keep in mind our retirement accounts have a 10% penalty for raiding them and should only be used as a last resort. Gold and silver purchased recently also can have a significant penalty as we often do not get the premiums back on coins we sell.
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