Does hoarding cash = debt free living? Debt free living is certainly elusive for many Canadians. We have grown fearful about the volatility of the stock market and the future of the resources industries. As a result, instead of investing they are hoarding cash. According to a recent report from CIBC World Markets: Canadians are holding a record $75 billion in extra cash that would have normally been invested $75 billion represents almost 10% of the total value of overall personal liquid assets in Canada Personal cash positions were at a record high at the end of 2015 Cash holdings are up 11% over the past year The rise in cash holdings is attributed to risk aversion People 35 years old and younger hoarded the most money, as a proportion of their total wealth Notwithstanding all this extra cash, Canadians have the higher debt per capita of all time and have not allocated any of the cash for debt free living How can hoarding cash effect your retirement? Low-yield bonds and heavy debt
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