There Are Drawbacks To Keeping All Of Your Savings In Cash: Expert

CBS Chicago

(CBS) — Do you stash your money in the bank these days instead of opting to invest? If the answer is yes, you may be part of a new trend.

There’s some evidence that many people are keeping cash for the long term rather than diversifying their assets.

CBS 2’s Kris Gutierrez looks at why this could be a dangerous strategy.

David McCombie runs a private investment firm.  You would think he would be investing in stocks and bonds, but you’d be surprised where he is keeping most of his money.

“I decided to keep my money in cash, rather than the public markets, because it provides me with the liquidity to react quickly,” he says.

He’s not alone. A Bankrate Inc. survey found that overall, 25 percent of Americans prefer cash to other assets.

And that’s reflected in how some people are investing. One study found that U.S. investors are raising their cash…

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