#050: Can You Have Too Much Cash? and Planning For The Things You Hope Don't Happen
Big Picture Retirement®
Devin Carroll
4.7 • 546 Ratings
🗓️ 11 December 2017
⏱️ 25 minutes
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Summary
Stacey's financial advisor recommended 3-6 months of living expenses be in cash. She asks us how much she really needs.
Ron from Portland wants to know what to do with his personal trust now that the beneficiaries are responsible adults. Does he still need this estate planning tool, or can he just have the trust terminate at his death?
For more, go to http://www.bigpictureretirement.net/050
Transcript
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| 0:00.0 | The Big Picture Retirement Show does not provide specific tax, legal, or financial advice. |
| 0:05.1 | Listeners are encouraged to seek out their own advisors in these areas. |
| 0:12.7 | Hello everyone and welcome to the Big Picture Retirement Show, where we deliver insight on what you need to know for a meaningful and successful retirement. If you are planning for |
| 0:22.6 | or living in retirement, this is the show for you. I'm Devin and with me today, as always, is my co-host |
| 0:30.4 | John. Hey, John. Howdy. So John today is our listener question episode. We love coming to this and we have some good stuff today. |
| 0:39.0 | Got some good questions. |
| 0:40.3 | Yeah, so let's get it kicked right off. |
| 0:42.5 | First comes from Stacy in Maine. |
| 0:46.3 | And she says, Devin, how much cash do I really need? |
| 0:51.8 | And so as you go through this email, it looks like that she may be struggling with |
| 0:56.2 | keeping too much in cash, especially relative to the market performance that we've had, right? |
| 1:01.0 | It can almost feel a little bit foolish. And I think that's maybe what she's feeling when you |
| 1:05.0 | keep too much in cash and it's just sitting there and it's earning, you know, 0.7%. And meanwhile, the market's just running away doing awesome things. Yeah, but you want to counter that with the risk of a downturn? Certainly. And that sort of thing. And, of course, I assume that that's what she's asking. Yeah, it is. And not, hey, how much paperfoldy money should I be storing in my shoebox? Right. |
| 1:32.8 | So what she goes on to say in her email is that her financial advisor has recommended the three to six months of living expenses that she keeps back in cash, which she's pretty |
| 1:38.9 | comfortable with, but she actually wants to keep a little bit more than that in cash. |
| 1:43.9 | Okay. |
| 1:44.5 | So here's what I say. |
| 1:46.0 | It really comes down to what keeps you up at night, right? |
| 1:50.2 | Personally, I probably keep more in cash in my savings accounts and things like that than I should. |
| 1:56.8 | But for me, I've been through hard times before. |
| 1:59.9 | John, I know you've never been through any difficult |
| 2:01.7 | financial times. So, yeah, that's, yeah, sure. But I have, and I can remember times when just a couple |
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