In investing, cash is generally viewed as something best avoided or minimized. Holding some may be necessary for basic liquidity needs, but the classic investment strategy is to keep as little on hand as possible, and to put the rest to work on long-term goals.

Recent research, however, suggests that holding cash appears to improve our feelings of financial well-being and life satisfaction. And this research has ramifications for the entire advisory industry. If clients actually feel happier when they hold more cash, perhaps their portfolios should be adjusted accordingly.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access