Our Blog

While the wording changes from person to person, we receive the role of cash question often. One person may ask this question since they feel they should be investing more. While another individual may be worried about an upcoming expense.

Either way, there is a thin line between having too much cash and needing more. The answer as to where that line lies will be unique to every person or family. That’s something we evaluate together.

According to the Financial Planning Association (FPA), maintaining some of your retirement savings in cash has at least three benefits.[1]

First, you will have cash readily available when there might be a reluctance to sell due to current market prices, taxes, or transaction costs. This will help with the quality of your retirement by ensuring you have the money when that washer needs to be replaced, or the car needs repairs. You don’t put those things off because of how the market is behaving.

Second, there is a greater chance you will stick with your investment strategy, even when things get volatile. We all know that stock market prices can vary. Sometimes that variance can be significant. The emotional reaction is to sell when the market makes wild declines. Investment rules, not emotions, should dictate whether you buy or sell. It becomes much easier to stick to those rules if you have a cash reserve to pull from for needs.

Third, there is a greater statistical possibility of success in your retirement strategy when you have proper cash reserves. In fact, it can be as much as 6% higher, according to the FPA study. You get that statistical bump in the success of your plan because you don’t sell at inopportune times in market cycles, and you don’t avoid investing enough, either.

So, if you have some cash set aside, but are unsure if it’s too much or too little, let’s run an analysis. Contact us today to schedule an appointment.

(503) 257-0057




[1] https://www.financialplanningassociation.org/article/benefits-cash-reserve-strategy-retirement-distribution-planning-OPEN

Source: Bill Good Marketing, Accessed 7/21/23



DISCLOSURE: Investment advisory services are offered through Gretchen Stangier, Inc. DBA Stangier Wealth Management (“Stangier Wealth Management”), an investment advisor registered with the U.S. Securities and Exchange Commission. Stangier Wealth Management only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided copies of the firm’s ADV Part 2A brochure and Part 3 documents.

DISCLAIMER: This website is for informational purposes only and does not constitute a complete description of our investment services or performance. This website is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered or where an exemption or exclusion from such registration exists. Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY ‘LINKED’ WEBSITE.

You may also like

How Your Savings Account Can Become Your Retirement Redeemer

Many news stories and advisors lately seem to focus investment strategies as a surefire way for people to gain extra…

How to Save Money on Monthly Bills

Maybe you’ve only thought of haggling when hunting for bargains at swap meets. Or you’ve dickered with a merchant to…

Estate Planning: Who Takes Care of Your Pet when You Can’t?

Fido or Kitty has been your constant companion for years. He’s been there to share your triumphs and comforted you…