Is Cash Really King?

From my US News article, linked below:

Retirement savers have long heard the axiom “cash is king.” Certainly, managing cash flow is a key tenet of retirement planning.

In addition, it’s prudent to hold some cash in an investment portfolio. That allows an investor the flexibility to add to a position if an opportunity arises, gives some wiggle room while trades settle, and can offer a psychological buffer for investors with lower risk tolerance.

Typically, financial advisors allocate no less than 5% to cash, and often an amount closer to 10% or even 15% or 20%.

But during volatile market conditions, does it make sense to use a higher-than-normal cash allocation to preserve capital? Here are some factors to consider when determining how much cash to hold in your investment portfolio:

💰Cash can be a drag on performance
💰Cash holdings in actively managed funds.
💰Cash equivalents are your friend.
💰Risk tolerance can affect cash balances.

US News & World Report: https://money.usnews.com/financial-advisors/articles/how-much-of-an-investing-portfolio-should-be-in-cash

Set up a call with Blue Marlin Advisor: https://www.bluemarlinadvisor.com/contact.html

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