WHAT SHOULD I DO WITH MY CASH?
More than ever before, I keep hearing: “I’m sitting on too much cash right now! What do I do with it? Where do I put it? When do I put that cash in the market?”
Let me first congratulate anyone who has a cash abundance – “champagne problems” per our team! Cheers to you!
More importantly, let’s discuss your options. My first response, which is always correct, being: It truly depends on your situation. Aside from that, some general strategies I recommend for extra cash include:
• High-yield money markets for excess cash/emergency savings
Cash is KING and will always reign supreme. Given the recent actions of the Federal Reserve, interest rates have risen and given investors opportunities to earn returns on their excess cash that were not available just a few years ago.
• Invest in the market!
Once your retirement accounts are maxed and your emergency savings is funded, consider opening a brokerage account. For money set aside for long-term goals, the stock market can be a great way to invest!
• Establish a Donor Advised Fund
If you are charitably inclined, you can start a Donor Advised Fund through Raymond James and take the tax benefit the year it is funded. You are not required to spend the money the same year.
Investing involves risk and you may incur a profit or a loss regardless of strategy selected. Past performance is no guarantee of future results. Prior to making an investment decision, please consult with your financial advisor about your individual situation.