Kristin Sullivan, owner of Sullivan Financial Planning, also embraces the cautious approach saying, “if you truly need the stability of cash as an emergency fund or for expenses coming up in the next 12 to 18 months, you need to let go of beating inflation as a goal.”
“Instead, calculate the smallest amount that needs to be in that cash fund and just resign yourself to no returns,” she added. “It’s the price you pay for safety.”
