How Much Cash Should You Hold in Your Portfolio?

In this episode of Buckingham Perspectives, Chief Investment Officer Kevin Grogan provides insight into a common question from investors – what's the right amount of cash to have in my portfolio? As cash is the safest investment and can easily be used for other needs, it makes sense that it has historically provided lower returns than stocks and bonds. To make sure your portfolio will outpace inflation over the long term, a good rule of thumb is to hold between one to six months of living expenses in cash and allocate the rest to stocks and bonds based on your comfort level. Speaking to a wealth advisor can also help determine the amounts that make sense for your financial goals.

If you have any questions, please drop us a note.

For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based on third-party data and may become outdated or otherwise superseded without notice. Third-party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. The time frame was chosen because of the dates of available data. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio nor do indices represent results of actual trading. Information from sources deemed reliable, but its accuracy cannot be guaranteed. Performance is historical and does not guarantee future results. All investments involve risk, including loss of principal. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this information. Please be advised that Buckingham only shares video and content through our website, Facebook, LinkedIn page, and other official sources. We do not post investment advice on WhatsApp, Telegram, other interactive applications, or other similar platforms. Rather, Buckingham provides investment advice only through individualized interactions