The Power of Cash

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This article was authored by: Ryan Hughes

Our role is to make sure you understand your options and how your plan is designed to work – so when markets are difficult, you’re making informed decisions, not reactive ones. Cash plays 3 important roles in your portfolio: 1. Protection: when markets drop, your cash doesn’t. You stay steady. No bad decisions under pressure. 2. Flexibility: a pension gives you income; it doesn’t give you options. When life shifts – health, early retirement, market change – liquid assets give you room to adapt. 3. Opportunity: the best buying opportunities come when markets fall. Investors with cash can act. Investors without it can only ride out the storm or worse, sell at a loss. Please click to view the full article: more about sequence risk, the arithmetic of loss, and the investing years we stand to lose waiting for markets to fully recover. Lost time is the one cost we cannot get back.