Today’s Practical Planning Tip will continue our conversation on my outlook for 2024.
Avoid keeping too much money in cash: The yields on money market accounts were extremely attractive in 2023 (with yields being over 5% for part of the year). They were a wonderful place to park cash that may be needed for an expense in the not-too-distant future. Remember, though, that these high money market rates will not stay elevated forever. Furthermore, sitting with too much money in cash is a wonderful way to lose buying power due to inflation. If you’d like to build wealth and outpace inflation, it’s imperative to invest in risky assets like stocks. Failure to do so may be detrimental to your long-term finances.