IDLE CAPITAL ANALYSIS
What your uninvested balance is quietly costing you.
Most households carry more cash than their plan requires. The analysis below is a starting estimate — the conversation that follows is where it becomes specific to your tax position, liquidity needs, and time horizon.
ILLUSTRATION · CASH DRAG
The Cash Drag Calculator
Cash feels safe. Over long horizons, an oversized cash position has a cost. Move the inputs to see the hypothetical difference between cash and a deployed portfolio under stated assumptions.
Estimated Opportunity Cost
$174,458
over 10 years, on $270,000 held in cash.
Assumptions
- Assumed portfolio return: 6.5% annually, compounded
- Assumed cash yield: 2.1% annually, compounded
- No inflation adjustment applied
- No tax adjustment applied
- No fees, withdrawals, or contributions modeled
For illustration only. This is a hypothetical calculation based on inputs you provide and stated assumptions. It is not a projection, not a recommendation, and does not reflect the performance of any Broadway Advisor Group portfolio. Actual results will differ.
Model this against my actual portfolioCash Has a Job
Reserves belong in a plan — sized to real obligations, not to uncertainty. Everything beyond that reserve should have a stated purpose and a stated horizon.
The Cost Compounds
The gap between a money market yield and a diversified portfolio return is small in a single year and material across a decade. That gap is what an idle balance actually costs.
Deployment Is a Decision
We size, schedule, and document how excess cash is put to work — with tax position, liquidity needs, and risk tolerance considered before anything moves.