The article explores the viability of keeping significant savings in cash, especially within the context of modern retirement plans. It highlights a person's experience in the r/fatFIRE community, revealing that maintaining around 25% of their net worth in cash, particularly in a money market account earning 4.4%, is meeting their financial needs. The article emphasizes that as long as savings are outpacing inflation, keeping cash is not necessarily a poor financial decision, and it serves the intended purpose of financial security.
I have around 25% of my net worth in cash, with the rest in various investments. This strategy suits my financial goals for now.
Keeping savings in cash is fine if it beats inflation, as it fulfills its primary purpose of safeguarding your money.
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