Dwight Writes


Preliminary Thoughts On a Guild

Financial advisors are nearly unanimous about one thing: every family should maintain a cash reserve of between three and six months of expenses to carry them through the occasional rough spot. That "rough spot" can be sickness, unemployment, or any number of other unexpected events that most families can expect to face at one time or another.
But putting aside readily-available cash in that amount is not efficient. If you put it under the mattress, or bury it in the backyard in a coffee can, it will be there (probably) when an emergency arises, but will have returned no interest in the meantime. Putting it into a typical bank savings account will earn a little bit, and its safer than the mattress or coffee can, but it still is not as efficient a use of the money as is possible.
What would be better is to pool the cash, using it in the way that banks and insurers do. These companies work on the well-known principle that it is unlikely that all "demand deposits" will be demanded at the same time by all the people who deposit them. So they hold some portion of it aside, but they invest the rest in ways that will provide the maximum return for the least risk to capital and availability.
By pooling their cash reserves, in other words, a group of families can still be responsible about their emergency supply of cash and, at the same time, make the most efficient use of their cash.
I am looking, therefore, for up to one hundred families who would be interested in forming a corporation to pool their cash reserves and invest some part of them in safe and efficient ways to maximize the value of those reserves. The investors will be co-owners of the corporation, and will make the decisions jointly about how the reserves are invested, and what uses are to be made with the returns on those investments. My real interest is not to generate additional cash reserves for the families involved, as if this were merely another investment group, but to make use of the investment returns in creative ways, for the possible benefit of many.
I believe in the power of people working together for good. And I see in the prudence of the family cash reserve an untapped opportunity to discover new ways for us to serve others. If any of this sounds reasonable and prudent, as well as the right thing to do, contact me. Become a part of something wonderful.


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