Is Cash Really King? The Hidden Risks of Holding Too Much Money in Savings

Cash feels safe—but holding too much of it could quietly cost you over time.In this episode of Make It Make Cents, Michelle Cropley and financial advisor Paul Lane explore the role cash should play in a financial plan, the emotional comfort it provides, and the risks investors often overlook.They cover:●    Why cash isn’t as risk-free as many people assume●    The impact of inflation and lost purchasing power●    How opportunity cost can erode long-term wealth●    Why investors often hold excess cash during uncertain markets●    The difference between emergency funds and excess cash reserves●    Common guidelines for determining how much cash to keep on hand●    How interest rates, CDs, money markets, and Treasuries influence cash decisions●    Why your ideal cash strategy changes based on age, retirement status, and financial goals●    The role emotions play in investment decisions—and how cash can provide stability during market downturnsThe key takeaway: cash can be an important part of a healthy financial plan, but there’s a difference between being prepared and being overly cautious. The right balance depends on your goals, timeline, and overall strategy