Episode 16: Even at 5% Keeping too Much in Cash Will Cost You Feat. Anthony Tozzi from Regerts Ink Removal

Hosts: Madison Demora and Mike Garry

Guest: Anthony Tozzi Owner/Manager/CEO at Regerts Ink Removal

Episode Overview

In Episode 16 of Not Just Numbers, hosts Mike Garry and Madison Demora explore the risks of holding too much cash, even when money market funds offer attractive 5% yields. They discuss how factors like fees, taxes, and inflation can erode real returns and emphasize the importance of balancing short-term safety with long-term investment growth. Later, the episode features an interview with Anthony Tozzi, owner of Regerts Ink, a tattoo removal company in Yardley. Anthony explains the process of tattoo removal and clears up common misconceptions, such as the idea that tattoo removal is excessively painful or leaves scars.

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Timestamps

  • 00:09 – 02:27 – Introduction to episode topic: Keeping too Much Cash Will Cost You
  • 02:28 – 08:06 – Cash and Money Market Funds
  • 08:07 – 12:40 – Investment Strategies: Short Term vs. Long Term
  • 12:41 – 19:22– Impact of Federal Reserve Policies. Role of Cash and Market Turbulence
  • 19:28 – 33:26 – Interview with Anthony Tozzi from Regerts Ink Removal

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Episode Glossary

  • Money Market Fund:
    A type of mutual fund that invests in highly liquid, short-term securities, offering higher interest rates than savings accounts but without insurance protection.
  • Interest Rates:
    The percentage charged by lenders to borrowers or paid to investors for holding their money, which directly impacts returns on investments like money market funds.
  • Inflation:
    The rate at which prices increase over time, reducing the purchasing power of money and affecting real investment returns.
  • Diversification:
    Spreading investments across different asset types to minimize risk and increase potential returns over the long term.
  • Federal Reserve (The Fed):
    The central banking system of the United States, responsible for controlling monetary policy, including interest rates, which influences investment strategies.
  • Tattoo Removal:
    The process of using lasers to break down tattoo ink so that the body can naturally eliminate it over time. Anthony Tozzi from Regerts Ink explains this process during the episode.
  • Hollywood Peel:
    A non-invasive facial procedure using lasers and charcoal to exfoliate the skin, tighten pores, and promote collagen production for a glowing complexion.
Anthony Tozzi, Owner of Regerts Ink Removal, featured on the Not Just Numbers podcast. He is wearing glasses and has a short beard. The podcast branding is visible on the right side, with the title 'Not Just Numbers: Honest Conversation with a Financial Advisor and Lawyer.Play Video

Key Takeaways

  • Cash may feel safe, but long-term, it can cost you – Holding too much cash leads to missed opportunities and lower real returns, especially after factoring in taxes and inflation.
  • Diversification is essential – Money market funds should be part of a broader portfolio that includes stocks and bonds for long-term growth.
  • Money market funds are not insured – They are generally safe but not guaranteed, and their value can fluctuate during financial crises.
  • Tattoo removal is accessible and less painful than you think – In the second half, Anthony Tozzi discusses how tattoo removal has improved, debunking myths about pain and scarring.

Transcript

Table of Contents

Introduction

Madison: Hello, everyone, and welcome to the 16th episode of Not Just Numbers, Honest Conversations with a Financial Advisor (and lawyer). I am Madison Demora, and I am here with Mike Garry. Mike is a financial advisor and a CFP and the founder and the CEO of Yardley Wealth Management. He is also an estate planning lawyer and his law firm is Yardley Estate Planning. Hey, Mike.

Mike: Hey, Maddie. How are you?

Madison: Good. Can we just take a minute? It’s the 16th episode. That’s crazy.

Mike: That is crazy. Sweet 16. Yeah, think about that. When you said 16th episode, numbers are going to start to get harder to say.

Discussion on the Wall Street Journal Article

Madison: Yeah. So, Mike, I showed you a article not too long ago, and it was from the Wall Street Journal, and it was titled How This Year’s Hottest Investment Could End Up Costing You. And that was by Eric Wallerstein. What did you think of the article?

Mike: I thought it was a great article. And, you know, usually when you. When we find articles for each other, we’re critical. But this one was good. You know, I didn’t like some of the sentiments in it, but I thought for the most part, it’s good advice. I can’t wait to dive into it.

Madison: So, like our previous episodes, I’m going to read a little summary of the article and ask Mike some questions and get his opinion. So here is the summary. Investors are holding more cash in money market funds due to the market turbulence and attractive 5% plus yields. However, experts caution that excessive cash holdings can lead to missed opportunities and eroded returns over time due to fees, taxes and inflation. Money market funds are safe but not insured. Their value can fluctuate in times of crisis. While the Fed’s rate policies make these funds attractive now, long term overexposure to cash may result in lower returns and missed investment gains. Diversifying across stocks, bonds and riskier assets is recommended for a more balanced approach. All right, so let’s get to the first question I have.

Factors to Consider in the Current Economic Climate

Madison: In the current economic climate, with the money market funds offering attractive yields, what factors should investors considered when deciding how much cash to hold in their portfolios? And how might fees, taxes, and inflation impact their investment decisions?

Mike: Great question. And it’s funny, the answer I don’t think has anything to do with what the rates are. Right. So you need cash for running your household, your person…

Understanding Money Market Funds and Their Risks

Madison: So when they say cash, they don’t mean physical cash. They just mean the money that you have on hand.

Mike: Right. Yeah. So when finance people talk about cash, it could be money on hand or cash in a savings or bank account…

Balancing Short-Term Safety with Long-Term Growth

Madison: Do you agree with the statement: Money market funds are a rational place to be for the next six months, but over the long term, taking risks pay you more.

Mike: I agree with half of that sentence. Right. So I think that there’s a little bit of a fallacy, and people, they compare different things…

Impact of Federal Reserve Interest Rate Policies

Madison: What are the implications of the Federal Reserve interest rate policies of investment choices? How does the expected future path of interest rates influence your investment decisions?

Mike: Yeah, so, again, it probably shouldn’t affect your decisions because the decisions would rely on, like that gambling thing…

The Role of Cash in an Investment Portfolio

Madison: How do you view the role of cash in an investment portfolio? Is it more of a short term tool for safety? Or can it be considered a long term asset class? Share your perspective on the dating cash analogy mentioned in the article.

Mike: Yeah, so I don’t like the dating cash analogy. Right…

Guest Interview: Anthony Tozzi from Regerts Ink Removal

About Regerts Ink and Tattoo Removal

Madison: We are joined here today with Anthony Tozzi. Anthony is the owner of Regerts Ink here in Yardley…

Anthony’s Background and Starting the Business

Anthony: Not directly in Yardley. I’m from Mercer County, New Jersey…

Process of Tattoo Removal and Common Myths

Madison: So is it a painful process?

Anthony: Each person takes it a little different…

Additional Services: The Hollywood Peel

Madison: So, as I was on your website, I saw you guys have something called a Hollywood peel.

Anthony: That is a face peel. Like a chemical peel without the chemical…

Challenges and Goals in Business

Madison: With all this success, you have achieved what is the biggest challenge you’re facing or you have faced?

Anthony: Just continue to bring new people through the door…

Advice and Legacy

Madison: If you could be remembered for one thing, what would it be?

Anthony: That I was kind and nice to people and giving…

Conclusion and Contact Information

Madison: For more information on Yardley Wealth Management or Yardley Estate Planning, you can visit our website at yardleywealth.net..

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