Many listeners and clients have recently asked me if they’re holding onto too much cash. Since inflation hits cash more than anything else, it’s a topic that’s on a lot of people’s mind.
Here’s the truth:
Cash yields basically nothing. And it shouldn’t play a huge role in your investment decisions.
In this episode, I reveal how much cash you should have on hand. And why holding too much money is stealing your wealth. Listen to the episode now.
Show Highlights Include:
- Why stockpiling cash drags down your entire portfolio (especially if storing money away makes you feel more secure) (3:06)
- The counterintuitive reason trying to time the market to maximize your gains costs more than buying an overpriced stock (5:39)
- The “3 to 6 month” rule of thumb that tells you exactly how much money you should hold in cash (7:47)
- The weird way playing it too safe can be more expensive than being wildly aggressive (9:01)
- How holding onto too much cash robs you in plain sight (9:05)
- The “Bucket Planning Strategy” for keeping enough cash on hand to fund emergencies (without sacrificing your future gains) (10:12)
- The “Wealthopoly Method” that maximizes your long-term investments (18:21)
- Why the old “set it and forget” method to investment can cost you hundreds of thousands of dollars (and why the “actively waiting” strategy is superior) (19:01)
To schedule your free retirement tracking meeting, specifically for first responders, head to http://pensionattention.com/ or call us at 805-409-8150.