Cash Management
4
min. read
Cash has one job.
Preserve your purchasing power in the short term and keep it accessible when you need it.
That's it.
Cash is not an investment. It is not a growth vehicle. It does not build wealth. And the moment you treat it like one, you've already made a mistake.
Here's how we think about cash — and how to make sure yours is working the right way.
We define money as purchasing power. Not the number on your statement. It's what you can actually buy with it.
That distinction matters more than most people realize.
Bury $1,000 in the backyard today. Dig it up in 30 years. You still have $1,000 — but you've lost nearly half your purchasing power. With average inflation running around 3%, what costs a dollar today costs roughly two dollars in three decades. The number stays the same. The money shrinks.
That's the real risk most people miss.
In the short term, the risk to your cash is loss and lack of access. Preservation and liquidity are everything.
Over the long run, the risk isn't a market crash. It's slow erosion — inflation quietly destroying what your dollars can actually do.
Cash is a depreciating asset.
Cash belongs in three places: short-term living expenses, upcoming capital needs, and emergencies.
Beyond that, it has no business sitting on the sideline.
It does not protect purchasing power over time. It does not compound. It does not work for you while you sleep. Every dollar sitting idle is a dollar falling behind.
Know what your cash is for. Know how long you need it. And have a clear plan for everything else.
Keep enough in an FDIC-insured bank account for day-to-day expenses and near-term capital needs. Quality matters here. A bank with accessible branches, reliable technology, and professionals who make your life easier — not harder.
FDIC insurance protects deposits up to $250,000 per individual and $500,000 per couple. No depositor has lost money in an FDIC-insured institution since 1933 — before current protections were even in place.
For Gg clients, we go further. Through our custodian's bank deposit program, FDIC protection extends across more than 100 institutions in a single account — up to $3,000,000 for individuals and $6,000,000 for joint accounts. Your money is protected the moment it arrives.
When you need to hold cash beyond 60 to 90 days, a high-quality money market fund is a great tool. These funds invest in short-term, high-quality instruments and offer meaningfully better yields than a standard savings account — without sacrificing safety or liquidity.
We vet the entire universe of available money market options and provide clients with a single, simple, institutional-quality solution built on 100% short-term U.S. Treasuries. You don't have to shop for it. We've already done the work.
A CD locks your money at a bank for months or years in exchange for a potentially slightly higher yield. You're trading liquidity for a marginal improvement — and taking on FDIC concentration risk in the process.
There is almost always a better option.
There is nothing wrong with wanting your cash to earn something while it sits. But there is a meaningful difference between managing cash intelligently and trying to make money on cash.
When that line is blurred — people make mistakes.
The moment you start hunting for the highest yield, or extending duration to pick up a few extra basis points, you've lost the plot. You're no longer managing cash. You're speculating with money that has a specific, short-term job to do.
When rates fall, the yield-chasers are left holding yesterday's answer to yesterday's environment, having kept money on the sideline that should have been invested years ago.
The cost of waiting is almost always higher than the yield you captured.
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Have a plan for your cash. Know what it's for. Know how long you need it. And put the rest to work.
If you're unsure how your cash is currently structured, or whether you're holding more than you should, reach out anytime. We're here to help.
Your life is our passion.
