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 CWA wealth advisor can also help determine the amounts that make sense for your financial goals.

Our strategic partner’s Chief Investment Officer, Kevin Grogan, CFA, CFP® provides insight into a common question from investors on cash allocations.

For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based upon third party data which may become outdated or otherwise superseded without notice. Third party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. 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 article.