New data reveals that Americans are keeping too much of their assets in cash

My FA and I butt heads very often over this very subject. It is the constant back and forth and my stance will not change. I love the peace of knowing that I could have a truly catastrophic event occur in my life and at least I have the comfort that at least from the money perspective it is already covered.

YMMV

The average is held up by people with millions in cash. The average American is still broke. I'll bet the median is significantly lower ($10k or less).

Simple personal finance rule of thumb: Most households should hold 3-6mo of net income in cash to avoid needing to draw down other assets which may have negative tax consequences (401k) or be at a low point (any investment) when needed. I know I'd need more than that listed amount to survive a significant period of unemployment. I don't know about you.

savings rate is 3% what the fuck are you on about. nobody asked me also. any of you guys a part of this study?

I try to keep $250,000 + 2 years expenses living like a broke person saved at all times. The 250 is in-case a great opportunity comes along and the 2 years because I could easily lose my main income sources ATM and they would take at least a year to rebuilt to something decent.

Incredible how many folks don't even have an emergency fund, let alone a rainy day/few months expenses saved up in case they lose their job.

I currently have about 20% in cash and really the only reason it is that high is because I like to save some for investment opportunities that I like (primarily undervalued stocks). The 20% is easily enough to pay for rent in an expensive city for 3-5+ years so I don't feel at risk at all having a low amount.

Mid-20s, don't own real estate, no debt. An additional 50% is highly liquid stocks which could be easily converted to cash as needed and the last 30% is 401K.

10% cash, though I'm typically at 15%. Spent a good chunk on starting a new business recently.

My first few years out of college I kept a very lean system, only kept one months expenses in cash reserves and invested the rest. At that point my cost of living was so low compared to income, and I had no real need to spend on anything that it made sense. The older/more burdened I get though, the more I see shitty unforeseen costs hit, so I carry more in cash.

I have about 20% in cash, but only because I am saving for a downpayment on my first home. I also have had trouble finding good investments for my cash recently, given how high equity valuations are.