How Much Cash Is Too Much?

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Retirement, Moneyadvice, Investing, Savingmoney, Personalfinance, Business

4.6 • 2.8K Ratings

🗓️ 4 September 2024

⏱️ 28 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

"Can we have too much in cash? My wife and I were saving for a new home, but decided to stay in our starter home instead. We have a large amount in cash now but we like the added security and flexibility to use it how we want (home renos, vacations, etc.). If we're saving and investing 25% for retirement, is there anything wrong with keeping it in cash?"

We'll walk you through that question and more in today's Q&A episode!

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Transcript

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0:00.0	Here's a question.
0:07.0	a question.
0:08.0	Can you have too much cash?
0:10.0	Brian, I am so excited that we get to answer that question. A matter of fact, I am so excited that we get to answer that question.
0:13.5	A matter of fact, I am so excited that we get to answer all kinds of questions
0:17.5	that you guys have.
0:18.5	It's what we love doing here on Tuesday morning.
0:20.8	So if you have a question, we would love for you to get that in the
0:23.5	live chat right now. We have the team out in the wings collecting them all. So if you
0:28.5	want us to speak to something that you
0:35.0	creative director Reebi.
0:38.0	Yeah, we're gonna kick it off with Craig's question.
0:40.0	He says, can we have too much cash?
0:44.0	My wife and I were saving for a new home, but decided to stay in our
0:48.0	starter home for now instead.
0:50.0	We have a large amount in cash now, but we like the added security and flexibility to use it
0:56.3	how we want to, home renovations, vacations, etc.
1:00.6	If we're saving and investing, 25% for retirement, is there anything wrong with keeping this big pot of cash?
1:09.0	What do you think?
1:10.0	So Craig, I love hearing that you are saving and investing 25% that was going to be like the big first thing that I was going to ask you
1:17.4	Since you're doing that I feel pretty good about where you are, but when it comes to holding cash I think the conversation that you have to have with
1:25.6	yourself is an opportunity cost conversation okay I've got the cash and it was going to be
	...

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