Of course we all want to have a healthy bank account and feel the security of knowing we have money at our disposal. Having plenty of cash on hand can help in the event of an emergency but building up your account too much can actually be a detriment to your retirement. Let’s talk about the situations where cash can be a benefit and the times when it can hurt you.
Show Notes and Additional Resources: https://principalpreservationservices.com/ep-22-is-having-cash-good-or-bad/
2:12 – In the News: IRS increased contribution limits for retirement accounts. How significant is this news?
4:14 – It’s all about the Benjamins. Let’s talk cash.
4:47 – What are some of the reasons you want to keep cash on hand?
7:20 – Then when is it counterproductive to have too much cash?
8:56 – How we work with clients on determining how much cash they need to have.
11:23 – Does fear drive a lot of those decisions to hold onto cash?
13:28 – What are some of the other investments outside of the market that people can put their cash in?
15:56 – Mailbag Question: I can sell my house right now for $500,000 and I only owe $100,000. I’m only 57 so I could sell the house and use that extra cash to retire early. Is that a good idea?