Are You Ready to File Your 2021 Federal Tax Return?
Posted on April 07, 2022
Planning and Guidance, Tailored To Your Life and Goals
Posted on February 10, 2021
Cash has been demoted as a financial wealth-building tool. Current interest rates and savings account yields don’t stack up when measured against historical rates. Throughout the 1990s, you could earn around 5% on a money market or savings account held at your bank. Yields were close to this as recently as 2007. Then, the Great Financial Crisis hit, and yields have been in the penalty box ever since.
Here’s what the annual payout would have been on $100,000 in savings over time:
There’s a fine line between maintaining sufficient cash and having too much liquidity. When determining what your preferred level of savings is – including cash accounts in your local financial institution as well as money markets in your investment accounts – keep the following in mind:
We recommend maintaining sufficient cash to pay your bills, address unforeseen expenses like car repairs, and (when the pandemic is over) to enjoy a night out on the town or an occasional vacation.
If you have questions about how much cash to keep, please do not hesitate to contact me or the office directly.
We’re here to help!