According to data from BlackRock’s 2013 Investor Pulse Survey, investors of all types in the US hold 48% of their investable assets in cash, with 18% in stocks and 7% in bonds.1
Steady gains in the stock market have influenced some sidelined investors to reinvest over the last few years, but the BlackRock study makes clear that most investors remain risk averse following the most recent financial crisis. It’s understandable – many investors took a hit and don’t want to see that happen again.
The cautious approach is understandable, but is being mostly in cash actually costing you in retirement? The answer: probably.