Are You Keeping Too Much Cash?

Editor's Views: Why cash is comforting in uncertain times, the magic of a new year of investing goals, and why you should be careful as Bitcoin booms again

Holly Black 8 January, 2021 | 11:08AM

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How much of your money is in cash? I don’t mean stuffed under the mattress or lost down the back of the sofa, I mean sitting in a savings account earning next to nothing or languishing in your current account . Most people already have too much money in cash and not enough invested – I’ll admit to being one of them – and that trend only intensified last year. The UK regulator found that 37% people with £10,000 of investable money have it all in cash.

Why is this a problem? Because cash doesn’t grow your money, it doesn’t pay an income, and it is not going to fund your retirement.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

 

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