FYI: A reader asks:
I am married with a 2.5-year-old daughter and my parents are also dependent on me. I bought a house in 2017 and I have a $253k loan on my 30-year mortgage @ 3.75%. I have $208,000 in my retirement accounts, including 401k and I have $3,100 in a 529 account. $32,000 in an overseas CD earning 6%. I have $61,000 in an emergency saving account earning 2%. And I have $134,000 in a savings account earning 2% And I don’t have a taxable investment account. So my question is what should I do with excess cash?
The good news is this reader is a diligent saver. Having excess cash is a good problem to have but it can be a problem nonetheless.
Cash offers optionality and provides a margin of safety but it can also become an addiction and is not the best long-term holding because you’re almost guaranteed to lose to inflation over time.
Regards,
Ted
http://awealthofcommonsense.com/2019/05/what-should-i-do-with-excess-cash/
