Welcome back to the Dollar Wise Podcast. In this episode, Jason Gabrielli, a certified financial planner, discusses the current trend of keeping money in cash. With high-yield savings accounts offering around 5%, many investors are unsure whether to invest or leave their money in cash. Jason highlights the importance of understanding historical returns and differentiating between short-term and long-term financial goals. He demonstrates how long-term investments in bonds and stocks have historically outperformed cash, despite recent attractive yields. The episode encourages listeners to align their cash holdings with their financial objectives and offers insights into market trends and behavioral finance.

Tune into this episode to also learn:

• The psychological factors influencing our financial decisions.
• The historical returns of cash, bonds, and stocks over 30 years.
• The potential risks of relying on high-yield savings accounts for long-term goals.

What we discussed

• [00:01:17] The current trend of keeping money in high-yield savings accounts.
• [00:04:07] Behavioral finance and the fear of losses over potential gains.
• [00:07:21] Historical returns of cash, bonds, and stocks over 30 years.
• [00:10:50] The importance of aligning cash holdings with financial goals.
• [00:14:40] How to balance short-term and long-term financial objectives.

3 Things To Remember

1. High-yield savings accounts offer short-term benefits but might not be ideal for long-term goals.
2. Investing in diversified assets, like bonds and stocks, has historically provided better returns over time.
3. Aligning cash holdings with financial objectives is crucial for effective financial planning.

Useful Links

Connect with Jason Gabrieli: jgabrieli@HFMadvisors.com | LinkedIn

Listen to EP.39 “Let’s Talk About Cash” - Apple | Spotify

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite