ST. CROIX INSIGHTS
Cash is King
BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC
You might find my statement hard to believe, but take that extra moment or two to let it sink in. Cash is genuinely misunderstood in our world today and how it fits into one’s own financial plan. This is why I think too many people have too little cash. Cash is king.
Take for example the recent government shutdown. Each newscast showed people who couldn’t pay for groceries, rent, mortgage or their insulin. his is a great example of people living paycheck to paycheck. I suspect for most people, it’s easy to remember when that described a period in our lives.
Yet, the statistics I read today are amazain – 60% of Americans are living paycheck to paycheck. Many are only one paycheck from losing their homes. In our world today, we are so focused on “stuff” to bring us happiness. One of my client’s recently pointed out that it’s not until you turn 50 years old that you realize you don’t need all this stuff. We are spending our way into working longer when we have to.
Cash is king, especially during the coronavirus pandemic.
Having cash isn’t a problem nor does it create a problem. If you had $100,000 or $250,000 just in your saving account today, what problems does that truly create? The answer is none!
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Ask yourself- can my portfolio support my lifestyle in my retirement?