Does cash reserve belong to investable asset?
Quote from CFA 2013 AM
Assets The Voorts own their home, valued at USD 1,250,000, mortgage-free. They have a taxable investment portfolio with a current market value of USD 2,500,000. This portfolio has no previous tax liability due in the coming year. Thomas received a lump-sum USD 10,000,000 payment from the sale of his business; his cost basis is zero. The net proceeds of the sale will be added to the Voorts’ investment portfolio. Their goals are to grow the asset base of the portfolio over time to maintain its after-tax purchasing power and to establish and maintain a cash reserve of USD 250,000.