A quandary of nerves
My wife and I are on our 2nd marriage and were both the ones that left with nothing (except inherited debt) and started again. After 18 long years we are now debt free. We invest, have plans and goals. We have a target of having 3, then 6, months worth of living expenses saved in a cash account. We are now at the point where we have 3 months. My quandary is - I am only earning 1.45% interest on this cash. Do I invest it into a high dividend ETF earning 3.5% (eg HDV) and take the risk, or just leave it in cash?
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I want to give huge props for getting to debt free. That is awesome 😎
For me, as time has gone on I've grown to appreciate having the extra buffer of cash. Most of the time I don't need it, but if it's not there all the time, then it also isn't there when I do need it. And when it's needed, its needed bad. So it's one of those psychological things where you will perpetually be challenged by the thought of "could this be money working harder for me?" The answer is "probably— but at increased risk."