It May Be Unsexy, But This One Asset Class Is Critical to Any Financial Plan

You can’t afford to forget about cash when planning for your wealth. Here are some guidelines to help manage this often-overlooked asset class.

Cash is crammed in a dresser drawer.
(Image credit: Getty Images)

If the past year and a half has taught us anything, it’s that having a good financial foundation is critical. While cash is such an important aspect of our everyday lives, many have become complacent about it, often overlooking it entirely as an asset class. Even if your priority is to grow your wealth, you need to build on a foundation of financial security. Cash is that foundation, offering you the comfort of knowing you can cover your monthly bills and unforeseen expenses.

With current interest rates so low, you may not even be thinking about your cash, but having a proper plan for it is a vital part of your financial health, and one that can add to your wealth in the long term.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Derek Ripp, CFP®
Partner, Austin Wealth Management

Derek Ripp, CFP® is a partner at Austin Wealth Management, a leading financial advisory team that works with families, executives and small-business owners to help them prepare a plan for the next phase of their financial lives. He helps families achieve financial independence and peace of mind. Derek lives in Wimberley, Texas, with his wife and two daughters. For more information, please visit