Managing Your Cash to the Max
July 27, 2021 | By Derek Ripp
AWM partner Derek Ripp, CFP® recently authored this piece for Kiplinger on how much cash to hold, where to keep it, and strategies to get the most out of it. Read the excerpt below and full article here.
If the past year and a half has taught us anything, it’s that having a good financial foundation is critical. While cash is such an important aspect of our everyday lives, many have become complacent about it, often overlooking it entirely as an asset class. Even if your priority is to grow your wealth, you need to build on a foundation of financial security. Cash is that foundation, offering you the comfort of knowing you can cover your monthly bills and unforeseen expenses.
With current interest rates so low, you may not even be thinking about your cash, but having a proper plan for it is a vital part of your financial health, and one that can add to your wealth in the long term.
As a financial planner who has helped hundreds of investors with their finances, I’ve seen a lot of money mistakes. One of the most common mistakes is clients trying to put too much of their wealth into non-liquid investments. While it’s tempting to aim for the biggest returns, this can lead to complications if unexpected events occur, like a job loss, larger-than-anticipated tax bill or even a global pandemic. Without easy access to cash, you may be forced to charge large amounts to your credit card or pull money from other accounts, incurring possible penalties or tax liabilities. You can avoid this simply by having a plan for your cash…
Head to Kiplinger or this link (https://www.kiplinger.com/personal-finance/banking/savings/603083/it-may-be-unsexy-but-this-one-asset-class-is-critical-to) for the rest of Derek’s tips!
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