Thoughts on Investment and Money built on a Christ-Centered Mindset


Should you hold any cash in your investment portfolio?

Should you hold any cash in your investment portfolio?

Given the amount of "money printing" and support governments around the world are pumping into the economy, is there any benefit to holding cash?

Actually there is! 

1. Unless your job is ultra secure, I always suggest having a few months' worth of expenditure on hand, just in case. This allows you to stay on your feet whilst you look for a new job, and won't be desperate to jump at anything. How many months? Well, it depends on how secure your job is right? If you work for the public service, you might not lose your job easily so 3 months or so might be good enough. If you are self-employed or in a high risk career, you might even need 3-6 months worth!

2. In terms of investing, cash provides a lot of optionality. This means you are able to take advantage of any market volatility when it comes. It gives you CHOICE.

3. Cash can help steady the ship. This is mainly psychological. Having extra cash on hand means the your investment portfolio may not rock as much as the general market. Hopefully you will then be less likely to meddle with the portfolio!

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