Portfolio cash accounts are typically kept for reinvesting opportunities or other events such as Required Minimum Distributions (RMDs). Investors and their advisors often want to move cash to securities for performance in an environment where interest rates are low or effectively at 0%. There are reasons that cash accounts should always be present in an investor’s portfolio:
As we enter a new year, many are hopeful that 2021 will be positively different from 2020 in health, the environment, and the economy. In the wealth management industry, we know things are already different as we see more Americans wanting to plan for their futures. Our parents and grandparents experienced The Great Depression that was life-changing for many, but COVID-19 is nothing compared to previous health and financial crisis in modern history.
2020 has been a year unlike any during our lifetimes with the COVID-19 pandemic and a poor economy. Many have been impacted with lay-offs and job losses and realize they were unprepared financially.