We should all keep 5%+ of our liquid savings in cash. It’s not like you will be missing out on interest and dividends.
1. It’s protection against macro economic shock.
2. It’s protection against embezzlement, judgements and seizure.
3. It’s flexibility. I can buy that car I saw on Craigslist, without the bank being open.
What is the best place to hide your cash once you withdraw it from the bank. That is what I’m considering to do in the future at least to have some loose cash around in case.
I think one should always have some cash in the house, but certainly not 5% of ones total assets. I would suggest you keep one month’s worth of expenses in cash. The trick is to store your savings in “real assets”
Consider what happens if the Govt collapses:
Federal Reserve Notes (dollars) are backed by the full faith and credit of the U.S. Govt.
If the status of the Govt is in question, what happens to the status of Federal Reserve Notes? (Hint: it ain’t good).