My wife and I have about $2 million in savings spread among a series of bank savings accounts, CDs and money-market accounts that we plan to draw on for retirement income in the near future. I keep it all in cash because I like the feeling of security I get from looking at my bank statement and seeing it’s all there. Am I being too cautious? –Richard N.
I get why you would prefer the security of bank accounts to putting your savings in more volatile investments like stocks and bonds. Even before the Greek debt crisis roiled the financial markets, many investors were concerned that stock prices had risen to the point where the market could be vulnerable to a significant setback. So if you know you’ll soon be tapping your nest egg for steady retirement income, it’s understandable you wouldn’t want to put it in harm’s way.