Question about Reserve Funds
From: Steve Gere (
Date: Fri, 10 Mar 2006 06:51:19 -0800 (PST)
Hello everyone,
I am Steve Gere and am part of the Berkeley cohousing community. We are currently going through our every 4 year update of our reserve study. One of the elements of the study is the premise of how much the funds earn after taxes. Thus, our investment strategy is part of this review.. Last year, we decided to invest our reserve funds in a diverse portfolio of money market funds, community loan funds, mutual funds and bond funds that we all agreed had a low risk of loss of principal. We are revisiting this decision this year and some of our members are uncomfortable with the risk associated with loss of principal. We realize that most of the advice we can find is that condo association reserve funds says that this money should all be in cd's and money markets. The author of the Complete Guide to Reserve Funding & Reserve Investment Strategies is pretty adamant about this. I am writing to you to see if there are any other communities that invest their reserve funds in anything other than cd's and money markets. If so, are you willing to share that information either on the list or via email?
Thanks in advance and Happy Friday,

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