Cash is king. Cash is liquidity, but actually it can be a very value eroding investment, as inflation (rising prices) can devalue and erode the purchasing power of cash

A real example of the risk of holding cash in an pension fund is here:-

http://factsheets.financialexpress.net/SLEFL/EUY4_RX.pdf

The Standard Life L&G Cash Pension Fund

The table below shows the fall in value of the fund. Grim reading.