AIG VALIC

OverviewCash ManagementRisk ManagementInvestment TypesInvestment StrategiesRetirement Planning
Investment Pyramid Cash Investments Bonds Stocks Mutual Funds



  Introduction
> Why Cash?
  Types of Cash Investments
  Risk vs. Return
  How Much in Cash?
  Q&A


>

Cash Investments

Why Cash?

Cash investments meet several needs.

Click on each of the features on the left for a more complete explanation of how cash meets that particular need.

Safety      

Cash investments provide guarantee of principal. Investors with very low tolerance to market fluctuations will usually have at least some of their funds in cash just so they can sleep at night.

Liquidity      

The ability and availability of assets to be readily converted into cash.

Short-Term Goals      

Because cash investments are very liquid they are the best tools for short-term needs such as paying for college tuition for your high school senior or for that vacation you plan to take next summer.

Emergency Reserve Fund      

The car breaks down or your dog needs an emergency surgery and you need money fast. Cash investments provide the safety of principal and the liquidity needed for this purpose. Do you have enough in your emergency reserve fund?

Gifting      

Since cash investments can usually be liquidated easily, are accessible in any amount and are easily tracked, they make perfect vehicles for gifting purposes.



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Last Updated: 11/26/2003