226: Finance Friday: Is Your Cash Losing Value While You Wait to Invest?

Sometimes having a lot of cash can be dangerous. Would you rather be sitting on months (or even years) worth of emergency reserves or have your money be challenging inflation by sitting in investments like index funds or real estate? This is the question that many people have, and also one that today’s guest, Phil, is having as well.

Phil and his wife live in a relatively low cost area and bring in a very solid income. They’ve been maxing out HSAs, 401(k)s, and other accounts all while having a significant amount of cash on the sidelines, just waiting for the right investment. While Phil wants to go into an unconventional type of real estate investing, both Scott and Mindy believe he should focus on the long-term goals he has set for himself and find asset classes that fit within his strategy. 

In This Episode We Cover

How much is too much of an emergency fund?

Selling tradelines and the risks/rewards that come with it 

Why investing in traditional-layout houses presents you with multiple exit strategies 

Solo 401(k)s, IRAs, HSAs, and other retirement accounts 

Creating a reasonable timeline to act on an investment, instead of losing money to inflation

Understanding what a good rent-to-price ratio is for your area

And So Much More!

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