Cash is not always king
In 2024, investors should reconsider the notion that cash is always king. While it may feel safe to keep money on the sidelines, the reality is that sitting in cash may not provide the desired return. With inflation and taxes eating into the value of money, the real yield on cash can be quite low. Instead of waiting for the “perfect time” to invest, investors should consider dollar cost averaging a portion of their savings into a diversified portfolio. This approach involves investing a fixed amount each month into a mutual fund or a diversified portfolio of assets. By spreading out the entry points, investors can mitigate the risk of making a single investment at an unfavorable time. While dollar cost averaging does not guarantee a profit, it can be a prudent strategy for navigating uncertain economic conditions and fluctuating interest rates.
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