New data reveals that Americans are keeping a sizeable chunk of their assets in cash — and losing out on returns as a result.
In February, we learned that most Americans are behind on emergency savings, with more than half of U.S. adults lacking the funds needed to cover six months' worth of living expenses. But what happens once you establish that emergency fund? Do you need more cash than that?
There's nothing wrong with having cash at your disposal that isn't earmarked for emergencies only. In fact, it's actually smart to keep some cash in your brokerage account so that if an investment opportunity comes your way, you won't have to sell off another position to pursue that prospect.
But thereis such a thing as having too much cash, and according to new data from NerdWallet, Americans might be falling victim to that very mistake. A recent survey reveals that U.S. adults currently hold $32,286 in cash on average. And that's a pretty sizable chunk of money to not have invested.
Maurie Backman | The Motley Fool