Keeping Cash on the Sidelines

In today’s low interest rate environment, it rarely pays to keep extra cash on the sidelines, outside of household spending and emergency funds. With interest rates on debt at two to three times higher than the average bank certificate of deposit (CD) or money market rate, most people are better off using extra cash to pay down debt or investing it for future goals.

What’s more, today’s low returns on cash and holding large cash portions can pose a risk for those nearing or in retirement. Investments that don’t outpace the rising cost of inflation and healthcare over time can make it nearly impossible to catch up, and poses a serious risk to your long-term retirement income strategy. 

Fortunately, there are ways to get your savings to work harder for you. Strategies like dollar-cost averaging allow you to make regular, periodic investments over time, enabling you to potentially purchase more shares at lower prices as the markets fluctuate over time.

If you’d like to learn more about this or other strategies to help you pursue your long-term retirement goals, please don’t hesitate to reach out.

^{This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.}

^{Dollar-cost averaging does not assure a profit and does not protect against loss in a declining market. Such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities. Investors should consider their financial ability to continue their purchases through periods of falling prices, when the value of their investments may be declining}

^{Investing is subject to risk and loss of principal. There is no assurance or certainty that any investment strategy will be successful in meeting its objectives.}