Some cash, yes. Money set aside for near-term expenses, emergencies, or planned purchases can provide stability and ready access. But if you’re holding a large amount in cash for years without a clear reason, it’s worth asking whether that choice still fits your goals.
By Jeff Herman
Every dollar in your financial plan should have a job. That’s part of what it means to Maintain the Gain: coordinating your savings, investments, and income to support the life you’re living now and the goals ahead.
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Why does my dollar buy less over time?
The number in your bank account may stay the same while the cost of groceries, insurance, utilities and health care rises. That’s inflation at work: each dollar buys a little less.
The change adds up.
The Bureau of Labor Statistics’ Consumer Price Index rose from 172.8 in August 2000 to 335.0 in August 2026. The broad basket of goods and services measured by the index cost about 94% more. In simple terms, something that cost $100 in 2000 would cost roughly $194 in August 2026.
Your personal expenses may have risen more or less, depending on what you buy.
Is holding cash a bad idea?
Cash can be useful when you may need the money soon. It can help you handle an unexpected expense or avoid selling investments during a market decline. The concern is money held for years without a clear purpose, particularly when its return falls short of inflation after taxes and fees.
In that situation, your account balance may look stable while its purchasing power declines.
A stable-value fund may also help reduce account-value fluctuations, but a stable balance doesn’t guarantee stable purchasing power. The return and terms vary by fund, so it’s important to understand how it fits into your overall plan.
What should I do with cash for long-term goals?
There isn’t one answer for everyone. The right balance depends on when you may need the money, your other sources of income, your goals, and your comfort with market risk. Investing can offer long-term growth potential, but it also carries the risk of loss and doesn’t guarantee a return above inflation.
For individuals, the practical question isn’t simply what the 10-year Treasury yield is. It’s whether your own savings, income, and investments are working together to support the life you want to fund.
Give your dollars roles that fit your needs: liquidity for near-term flexibility, and a strategy for long-term goals. That balance is central to Maintain the Gain. If you’re unsure whether your current cash position fits your plan, let’s talk.