We’re certainly discussing inflation and the volatility of the markets in many meetings lately. A specific point of those conversations is about what to do with any extra cash clients have been holding.
Questions you might have at the moment:
- What would be considered “excess”?
- Why should I invest excess cash instead of holding it in savings?
- Is the market too risky right now?
- Should I put off purchases?
We would suggest you ask yourself:
- What is the intended use for the cash I’m holding?
- Should I increase emergency fund to account for inflation?
- What affect does inflation have on my long-term goals?
- Do I have a financial plan that is updated regularly? If I’m following the course, am I feeling confident that my finances will weather the storm appropriately?
We are happy to discuss your answers.