What are the disadvantages of having too much cash?
What are the disadvantages of having too much cash? Holding too much cash over the long term can be very detrimental. Because it's universally true that inflation erodes the true value of cash over time. It eats away at your purchasing power. But, still, some liquidity is needed and wanted.
Are the rich hoarding cash?
More than a third of millionaire investors, 34%, report keeping more of their money in cash, according to the survey, which surveys households with $1 million or more in investible assets.
What is excessive cash?
The term broadly connotes the amount of cash over and above what a business requires to fulfil its daily operational cash requirements beyond what the company needs to perform its daily operations. Thus, excess cash occurs only when the total cash of the business is larger than total current liabilities.