Cash is Not King

Navigating the Financial Outcome Puzzle: Part Four. Keeping an excessive share of assets in cash, let alone making cash the principal component of one’s retirement savings, may be the most financially devastating decision your clients can make.

Saving for retirement is one of the most urgent tasks facing American households — and they take it very seriously. As of June 30, 2021, 401(k) plans held an estimated $7.3 trillion in assets and represented nearly one-fifth of the $37.2 trillion US retirement market, which includes employer-sponsored retirement plans (both defined benefit (DB and defined contribution (DC) plans with private - and public sector employers), individual retirement accounts (IRAs), and annuities. In comparison, 401(k) assets were $3.1 trillion and represented 17 percent of the US retirement market in 2011.

Cash is Not King POV Paper

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