The saying ‘it takes money to make money’ is less true today, but leaders must know where to seek guidance on investing reserves
May 8, 2020
By William Ehart
Small associations are among those hardest hit by the loss of revenue and financial market gyrations caused by the pandemic. These groups are less likely to have the reserve cushions larger associations have, more likely to be dependent on fewer revenue streams and have inadequate investment advice, if they have any at all.
Large groups typically have reserves corresponding to a significantly higher percentage of their budgets than the reserves held by small groups, said Ahmed Farruk, a certified financial planner who is senior consultant with McLean, Va.-based DiMeo Schneider & Associates.