What Should You Do with Cash Now?

Video Transcript:
Hi, this is Dave Shepherd with Shepherd Wealth and Retirement. Just wanted to address a question today that we’ve been getting a fair amount lately, and that is, what to do with cash now. And, sometimes, it’s an inheritance, or a retirement, or any number of things where you could have just gotten fresh cash. Sometimes that can be a lot, and the question is, with the markets as high as they are, with price earnings ratios as high as they are, what should I do with cash? And I think there’s three things you should always do when you’re thinking about investing cash.
Number one, you wanna review your entire situation. And you wanna review it with an eye towards your plans, goals, and opportunities. And also, to see how you would invest it if you weren’t worried about the market. So everything’s got to go into your whole picture, if you will, in its entirety, but also, how would you invest it if the market wasn’t a problem? Because that’ll be important, maybe later to be able to switch to that when times are different.
Number two, you want to look at your investment options, with an eye towards the process and how it’s performed or protected in the down market. So you really want to look for what happens– or how do you preserve it if markets go down? How is this gonna perform if the market’s on a downtrend? And that’s very important because there’s different characteristics and different asset classes, but you can pick and choose where you go, and this is really important to think about right now.
Number three, sounds a little bit like Las Vegas, but we’re gonna talk about things that might be overlooked or undervalued currently. Over and under, they’d call in Vegas, but overlooked areas are things that are currently undervalued. There are areas that are not as high and as overpriced as some other areas of the market. So that would be a third place to look and thing to really think about when you’re looking at what to do with cash now.
And four, for a bonus point, I think one of the filters that’s really good to always measure it against, is regardless of what you decide to do, does it make you feel more secure? Now, secure can mean different things to different people because some people don’t feel secure unless they’re being aggressive in the market. But other people feel secure because they have more financial security, more protection, if you will. So everybody’s different, but I think these three things are really important to think about if we’re investing cash now.
So, number one again, review.
Number two, look to how it has performed in a down market, and what’s the preservation process. Look in undervalued or overlooked areas. And does it make you feel, does it move you towards your goals? Does it make you feel more secure?
So thanks for taking a couple of minutes with me, I really appreciate it. I hope that helps. If you have any questions or comments, just give us a call any time or shoot us an email, we’re happy to talk to you.

Thanks, again.

About Dave Shepherd, ChFC, CFP®

Dave is the founder of Shepherd Wealth & Retirement in Tucson, Arizona. Dave is a Chartered Financial Consultant (ChFC) and Certified Financial Planner™ practitioner (CFP®). Have a financial question? Click Here to contact Dave Shepherd.

Investment advice offered through Shepherd Wealth Group, a Registered Investment Adviser doing business as Shepherd Wealth & Retirement.

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