Yes, You Can Have Too Much Cash - Kiplinger

May 27, 2021 · Having too much wealth parked in low-return assets can result in "portfolio drag," a term used to describe earning less on your money by playing it safer than you otherwise could.

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Jan 25, 2025 · How much money can you safely withdraw from your investment portfolio each year during retirement? One answer comes from a financial adviser who 30 years ago …

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FAQs about Yes, You Can Have Too Much Cash - Kiplinger Coupon?

Is stockpiling cash a bad idea?

But there's also a downside to stockpiling cash: It can drag down your portfolio's returns and cause you to fall behind financially over the long haul. If you're like many Americans, you're probably sitting on a larger pile of cash than normal after spending less during the pandemic and depositing government stimulus checks. ...

What is Kiplinger's favorite budget tool?

Here are a few of Kiplinger's favorites: Quicken’s Simplifi: Creates a personalized spending plan to monitor where your money goes. If behaviors change, such as holiday spending or travel increases costs, it allows you to tweak your budget to ensure you're meeting savings goals. ...

Does a 3% cash portfolio underperform a 15% cash portfolio?

A portfolio that increased its cash holdings from 3% to 15% (thereby reducing its stock allocation from 60% to 48%) underperformed a portfolio that remained at 3% cash by roughly 7% in the recovery period from March 23, 2020, through August 18, 2020, according to Wells Fargo Investment Institute. ...

Should cash play a big role in investment accounts?

But cash really shouldn't play a big role in investment accounts meant to fund long-term goals such as retirement or college tuition. "Cash becomes a drag on returns really quick," says Kristin McKenna, managing director at Darrow Wealth Management. ...

Are You blindly pumping too much into savings?

If you’re blindly pumping so much into savings for the future that you aren’t enjoying today, then maybe you’re going too far. Stop and do the math to see what you actually need. You might be surprised. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. ...