In this episode of the Retire Early Podcast, financial advisors and retirement planners Sam Benson & Linwood Fraher of Martin Wealth Solutions tackle a common question for pre-retirees and early retirees: What should you do with excess cash?

Sam and Linwood explain why holding too much cash can quietly erode purchasing power due to inflation — but also why having too little liquidity can create unnecessary stress and risk. They walk through how to evaluate emergency reserves, opportunity costs, investment timing, and risk tolerance when deciding how to deploy excess cash.

This episode provides practical guidance for striking the right balance between safety and growth — especially for those pursuing early retirement.

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00:00 – Introduction: The excess cash dilemma 01:32 – Why holding too much cash can be costly 03:10 – Inflation and purchasing power erosion 04:56 – The importance of emergency reserves 06:32 – Opportunity cost of idle cash 08:10 – Timing the market vs. strategic investing 09:46 – Matching cash levels to your risk tolerance 11:20 – Excess cash during early retirement 12:58 – Short-term needs vs. long-term growth 14:20 – Common mistakes with large cash balances 16:02 – Practical steps to deploy excess cash wisely

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