Even when cash yields are higher, as they are today, inflation still gobbles up most of the interest.
If a knowledgeable observer trained their sights on my choices, what are the trouble spots they would identify? Here are some of the biggies.
I Hold Too Much Employer Stock
I understand the tax implications of this, so I might as well sell each lot of restricted stock units as soon as it vests because there’s no tax benefit to hanging on longer. And it’s not like I think I possess some inside knowledge that the shares are likely to outperform the broad market.
Instead, the key culprit here is inertia. There’s a little bit of tax dread mixed in, too, as selling them would trigger a big tax bill. I’ve been in the process of divesting from company stock for the past several years, but the allocation is still high.
I Hold Too Much Cash
Even when cash yields are higher, as they are today, inflation still gobbles up most of the interest.
