Let’s Talk About Cash
With recent banking collapses and interest rates still at recent highs, understanding the right place for your cash is more important than ever. In this episode, we discuss different options for cash while maximizing its value and protection. We’ll explore alternatives to bank accounts like money market funds and treasury bills.
By comparing various cash management strategies, you’ll gain insights into the most effective ways to safeguard your wealth in uncertain times without sacrificing growth potential.
Tune into this episode to also learn:
- Options for how to store your cash
- How to maximize your money while maintaining a cash position
- Pros and cons of money market accounts and treasury bonds
What we discussed
(00:31) Should you keep physical cash?
(02:50) Is your money safe at a bank?
(03:54) Are treasury bonds worth it?
(07:47) What are money market mutual funds?
(11:05) The best bang for your buck.
3 Things To Remember
- Inflation risk is real; holding physical cash leads to loss of purchasing power over time.
- If you sell your bond before maturity, you might lose money due to interest rate fluctuations. If rates rise after you buy the bond, newer bonds would typically offer higher returns, making your older, lower-yielding bond less attractive. Consequently, the value of your bond decreases, and selling it before maturity could result in a loss.
- Bond funds can be a simpler way to invest in debt instruments, balancing stocks in a portfolio.
How to purchase treasury bills: Treasurydirect.gov
Connect with Jason Gabrieli: [email protected] | LinkedIn
Connect with Tyler Reedman: LinkedIn
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