We’ve been saying that Cash isn’t King – historically it is the worst performing asset class. It may feel safe, but it does not have the ability to keep up with inflation. Your excess cash could be working harder for you by investing instead of losing purchasing power.
We should all have some cash for short term needs and emergencies. But in times like these we tend to hold more than we should while volatility is increased.
If you’re still sitting on excess cash, it probably feels like you’ve been rewarded in the short-term.
If you invested additional cash earlier this year, you may be feeling like the market just took 3 years of your retirement living expenses.
So let us remind you that while it does feel like you’ve lost dollars because the value is down, you still own the shares of companies – who are in the business of making money (thankfully!). Which means that the shares are actually on sale right now!
Markets go up more than they go down.
You may recall that March 2020 felt pretty scary. But how much were we kicking ourselves for staying on the sidelines by July of that year?
So, what to do?
Whether or not you should invest more…use some cash to pay taxes on a Roth conversion…adjust your risk tolerance…or stay the course is dependent on several variables. A Financial Plan addresses these variables, so be sure to reference and update yours to make these decisions.
We’re here to talk through them with you as you navigate these uncertain and potentially uncomfortable times.
Just contact us.