Are You a Baby Boomer With Too Much Cash? Three Scenarios for What to Do

Investing in the market while the market is high might not seem like a good idea right now, but here are three scenarios to help you decide what to do.

An older woman smiles as she drives a convertible with the top down.
(Image credit: Getty Images)

In his forthcoming book, The Soul of Wealth, Dr. Daniel Crosby tells the story of how dominant Xerox was in the tech space. When Apple and Microsoft came along to create personal computers, Xerox chose not to invest in R&D. By the time its PC, the Xerox Star, hit the market, it was too late. The point of the story is that the timing in business and in markets will never be perfect. In fact, our perfectionism is to blame for keeping cash on the sidelines.

If we looked at markets in 2020, a global pandemic was certainly good reason to stay out. In 2021, supply-chain problems caused a spike in material costs and made it nearly impossible to get a car and many consumer electronics. Russia invaded Ukraine in 2022. About 70% of economists predicted a recession in 2023. And yet, in three of those four years, the U.S. stock market gained ground, which is in line with historical averages.  You will never find a perfect year to put that cash to work. You also shouldn’t blindly invest it.

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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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Evan T. Beach, CFP®, AWMA®
President, Exit 59 Advisory

After graduating from the University of Delaware and Georgetown University, I pursued a career in financial planning. At age 26, I earned my CERTIFIED FINANCIAL PLANNER™ certification.  I also hold the IRS Enrolled Agent license, which allows for a unique approach to planning that can be beneficial to retirees and those selling their businesses, who are eager to minimize lifetime taxes and maximize income.