October 23, 2023
Question:
I've seen that Money Market Funds are currently yielding 5%+. Should I be allocating more to cash and less to the stock market?
Answer:
While it’s true that cash and cash equivalents are enjoying their highest yields in years, don’t assume that this will last forever.
And while it’s also true that as you near retirement, you should allocate more to less risky investments including cash equivalents, the equity markets have historically delivered the kind of returns (over the inflation rate) that most of us will need to achieve long-term goals.
So, while cash looks better than it has in quite a while, don't let that disrupt or distract you from your asset allocation.
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