A robust emergency fund is the most critical component for your investment portfolio, according to Suze Orman.
The personal finance guru, appearing Monday on CNBC’s “The Exchange,” said the coronavirus pandemic has laid bare the need to have money saved in the bank for unforeseen challenges. She experienced it recently in her own life, after having emergency surgery this summer to remove a tumor on her spinal cord.
“The most important thing in anybody’s personal financial portfolio — more than all the stocks and everything — is at least an eight-month emergency [fund], maybe even a year emergency fund,” Orman said.
“If you haven’t learned that after this past year of what we’ve been through, I don’t know. You have to be on another planet,” added The New York Times bestselling author.
In late March, three days after the S&P 500 hit its intraday low of the coronavirus era, Orman