Skip to main content
Financial advisorInvestingInvestments

Even at 5% Keeping too Much in Cash Will Cost You

Even at 5% Keeping Too Much in Cash Will Cost You – Featuring Anthony Tozzi from Regerts Ink Removal


Welcome to the 16th episode of the Not Just Numbers Podcast: Honest Conversations with a Financial Advisor (and Lawyer). Hosted by Madison Demora and Mike Garry, this episode dives into the risks of holding excessive cash, especially when money market funds offer attractive yields. The special guest, Anthony Tozzi from Regerts Ink Removal, also shares insights about his unique business. Let’s explore why balancing cash with other investments is crucial for long-term financial health.

The Risks of Holding Too Much Cash

Understanding the Current Market Situation

Madison kicks off the discussion by referencing an article from the Wall Street Journal titled “How This Year’s Hottest Investment Could End Up Costing You” by Eric Wallerstein. The article highlights that while money market funds are currently offering attractive yields of over 5%, holding too much cash can lead to missed investment opportunities, eroded returns due to fees, taxes, and inflation.

Why Cash is Necessary

Mike Garry explains that while cash is essential for everyday expenses, emergency funds, and short-term needs, holding excessive cash beyond what is necessary can be detrimental. He emphasizes that the decision on how much cash to hold should not be influenced by the current interest rates but by individual financial needs and goals.

The Role of Money Market Funds

Money market funds are a type of mutual fund aiming to maintain a stable asset value of $1 while providing interest returns. Although they are not insured, they are considered relatively safe due to their short-term, liquid investments. Mike notes that while these funds are a rational choice for short-term needs, they should not replace long-term investment strategies involving diversified portfolios of stocks and bonds.

Balancing Safety and Growth

Factors Influencing Cash Holdings

When deciding how much cash to hold, investors should consider their need for liquidity, emergency funds, and upcoming expenses. The current yields should not be the sole factor in this decision. Instead, a well-balanced portfolio tailored to an individual’s risk tolerance and financial goals is recommended.

The Impact of Fees, Taxes, and Inflation

Holding large amounts of cash in money market funds can result in lower real returns after accounting for taxes and inflation. For instance, a 5% yield may be reduced to 3.5% after taxes, and with inflation rates higher than 3.5%, the real return could be zero. This makes long-term investments in stocks and bonds more attractive despite their short-term volatility.

Guest Spotlight: Anthony Tozzi from Regerts Ink Removal

Introduction to Regerts Ink Removal

Anthony Tozzi, the owner of Regerts Ink Removal, joins the podcast to share his journey. Based in Yardley, Regerts Ink specializes in tattoo removal, offering services to those looking to lighten, fade, or completely remove tattoos.

Common Reasons for Tattoo Removal

Anthony highlights that most clients seek tattoo removal due to relationship changes, dissatisfaction with the quality of the tattoo, or simply a change in personal taste. He mentions that name removals are particularly common.

The Tattoo Removal Process

The tattoo removal process typically involves multiple treatments, depending on the tattoo’s ink density, age, and colors. Anthony assures that the process is relatively painless, with the sensation described as similar to a hot bacon grease splash or a rubber band snap. Various methods, including anesthetic chillers and numbing creams, are used to minimize discomfort.

Business Challenges and Successes

Starting a niche business like tattoo removal during the pandemic presented challenges, but Anthony’s passion and commitment helped Regerts Ink thrive. He discusses the importance of effective marketing and branding, particularly in educating potential clients about tattoo removal services.

The Hollywood Peel

In addition to tattoo removal, Regerts Ink offers a popular service known as the Hollywood Peel. This procedure uses liquid charcoal and lasers to exfoliate the skin, shrink pores, stimulate collagen, and even out skin tone, providing a quick, painless glow-up perfect for special occasions.


Balancing short-term safety with long-term growth is essential for a successful investment strategy. While money market funds can be a good place to park cash temporarily, over-reliance on them can lead to missed opportunities and lower real returns. Diversification across different asset classes remains the best approach for long-term financial health.

For more insights on financial planning, follow the Not Just Numbers Podcast and visit Yardley Wealth Management. To learn more about tattoo removal, check out Regerts Ink Removal.

Table of Contents

Michael Garry Yardley Wealth Management

Author Michael Garry Yardley Wealth Management

Michael Garry is a CERTIFIED FINANCIAL PLANNER™ practitioner and a NAPFA-registered Financial Advisor. He is a member of the National Association of Personal Financial Advisors (NAPFA) and the Financial Planning Association (FPA).

More posts by Michael Garry Yardley Wealth Management