Identifier: C5T6L1 · Revision: 2026-10-26 · Classification: domestic

Decision and objectives

The practical task is to plan a staged household reserve with explicit spending dates. Make the decision reproducible: name the exposure, time horizon, cash requirement and comparison baseline before selecting a product.

Objectives: Plan a staged household reserve with explicit spending dates; Compare a return-seeking allocation with a robust liquid baseline; Choose a funded response to redemption and market stress.

Prerequisite: C5T7L3; completed Classes 1–4 and the Stock Market School foundation or Forex School foundation. Every example is hypothetical. Prices, dates, rates, fees, contract factors, policies and tax schedules are supplied teaching inputs, not current offers or legal parameters. No live account is needed.

Mechanics

A household plan treats essential spending as a dated obligation rather than an investment forecast. The reserve floor covers unexpected needs; it cannot simultaneously fund scheduled expenses or derivative collateral. Separate bank cash, fund redemption receivables, maturing securities and long-horizon risk assets. Ownership and total wealth do not imply immediate access.

This integrated case combines the cash products of Class 1, debt dates of Class 2, portfolio costs and the custody checks just taught. All named product routes are fictional categories with supplied terms; no deposit protection, current fund cutoff or market liquidity is promised.

Price and return drivers

For every date calculate free cash plus receipts actually available, less spending, costs and protected reserve. Stress long-horizon assets separately. Compare a plausible adverse wealth loss with the all-cost loss budget, then check whether any timing shortfall would force sale of those assets. The same scenario cannot assume both a stressed sale price and full unhaircut collateral value for the sold holding.

Worked case

Hypothetical household has TRY 1,200,000, education payment TRY 200,000 on day 45, renovation TRY 300,000 on day 150, reserve floor TRY 90,000 and all-cost market-loss limit TRY 160,000. Candidate: bank TRY 150,000, short-term fund TRY 250,000, bill ladder TRY 300,000 maturing day 120, equity fund TRY 500,000 for at least three years. Paid implementation costs TRY 2,000 reduce bank cash to TRY 148,000. Supplied fund normal cash T+2 and stress T+4 require an instruction early enough for education; the bill can fund renovation only after maturity. Under a −30% equity-fund shock, loss TRY 150,000 plus paid costs TRY 2,000 = TRY 152,000, within the supplied loss budget before other shocks. Income and real tax are excluded, so no assumed return is needed to meet spending.

Adverse case

The adverse case delays fund cash beyond day 45. Bank cash above the reserve is only 148,000 − 90,000 = TRY 58,000; education gap is TRY 142,000. Selling the equity fund may compound a drawdown and still settle too late. A robust revised baseline moves TRY 200,000 from the short-term fund into bank cash before that uncertainty: bank TRY 348,000, short fund TRY 50,000, bill TRY 300,000 and equity fund TRY 500,000. Education leaves bank TRY 148,000; bill maturity funds renovation. With the equity shock and both payments, remaining wealth is 1,200,000 − 2,000 − 150,000 − 200,000 − 300,000 = TRY 548,000, consisting of bank148,000, short fund50,000 and equity350,000. This is lower wealth after spending, not a 54.3% investment loss.

Practical use

Verify bank/fund legal form, current dealing and withdrawal terms, ladder maturities, custody blocks and actual fees. The revised plan may forgo a hypothetical 0.8% holding-period fund advantage on TRY 200,000, or TRY 1,600, but avoids depending on uncertain redemption for essential spending. Record any actual interest, fund expenses already in unit prices, transfer/custody cost and dated tax separately. A protected bank account and a fund have different terms requiring their own documents.

Use permitted domestic access routes and the actual instrument documents. Verify intermediary authority, investor eligibility, order/redemption terms, settlement, custody and executable size before implementation. Reconcile spread and commissions, funding, collateral, custody, product expenses, conversion and exit charges; an amount already embedded in a fill or fund unit price is not deducted again. A published mark or product description does not promise an executable price or liquidity.

Tax is excluded unless a numerical schedule is expressly supplied as hypothetical. For actual rules record income year, residence and individual/corporate status, instrument and acquisition/contract dates, taxable event and rule effective date. The GIB investment-income guide, checked 2026-10-26, covers 2025 individual income; its 2026 publication date alone cannot settle a 2026 liability.

Decision boundaries

Choose the more immediate cash reserve when the spending date is firm and the redemption uncertainty is material. It remains exposed to bank access, inflation and unexpected expenses; the bill and equity fund retain issuer/market risks. Decline leverage or illiquid alternatives that consume the reserve or require favorable asset prices to pay education.

Practice and references

Exercise: hypothetical wealth TRY 800,000, essential payments TRY 180,000 and TRY 220,000, reserve TRY 80,000, implementation costs TRY 2,000. Solution: minimum cash/maturity resources for those obligations are TRY 482,000; remaining maximum long-horizon allocation TRY 318,000. At a 25% adverse move it loses TRY 79,500; including costs gives TRY 81,500. If the all-cost limit is TRY 80,000, reduce risky allocation to (80,000−2,000)/0.25 = TRY 312,000 and keep the additional TRY 6,000 liquid.

Takeaway: Choose a funded response to redemption and market stress with the cash dates, costs and remaining risks stated.

Product card: portfolio-decision-record. Formula: Staged household allocatable surplus. Glossary: Staged spending plan, Reserve floor. Next lesson: C5T6L2. Topic test.

Sources checked 2026-10-26:

Additional product cards: mutual-fund.

Shared reference guide