Why Holding Cash is a Terrible Idea

I watched this YouTube video this morning, and it hit home.

I immediately logged into one of my brokerage accounts from my phone and put some idle money to work.

Over ten years or more, holding cash will never win out. Even if it was a brilliant idea to hold cash in 2022, it’s never a smart idea over the long term.

Even if I’m sitting here all happy to be making 5% on my money market funds, above the money I need over the next 12 months to live, that money should go into international stocks.

I’ve been saying this for years. I need to invest my cash. But this video again drives it home that I have too much cash, and I should not be complacent with investing in short-term government bonds.

So today, I will push at least 25% of my cash into the stock market. Including bond funds. Which will still leave me with a lot of cash.