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Making Money on Your Cash
311 Plays3 years ago
In recent memory, there haven’t been a ton of ways for business owners to make money on their cash. But rate hikes by the Fed have created an environment where there is opportunity to achieve a decent return on fully liquid cash. On this week’s Simple Step, we’ll talk through the strategies we’re currently using to take advantage of the current rate environment.
As always, this discussion is for informational purposes only and should not be considered advice. Where you need help, don’t hesitate to reach out to your financial advisor to discuss your options.
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Transcript
Introduction to Uncommon Wealth Podcast
00:00:00
Speaker
Everyone dreams of living an uncommon life and the best asset you have to achieve your dreams is you. Welcome to the Uncommon Wealth Podcast. We're going to introduce you to people who are living uncommonly. We're also going to give you some tools and strategies for building wealth and for pursuing an uncommon path that is uniquely right for you.
00:00:26
Speaker
Hello and welcome to the Uncommon Wealth Podcast.
Money-Making Strategies Unveiled
00:00:29
Speaker
I'm your host, Phillip Ramsey. I'm Brian Dewhurst. Thanks for tuning in to us. We have a simple step for you today, actually a really fun one and something that is fun to talk about because it hasn't always been the case, but getting money to make money in your business. How do you do it? We're super excited. We only got five minutes, so you better talk fast, man. I think I can wrap this up in 30 seconds.
Earning Yield on Cash with Higher Interest Rates
00:00:50
Speaker
The advantage of higher interest rates is now you can actually get a yield on your cash. Personally, business-wise, non-profits, everyone should be trying to get interest on their money. We've been accessing the Treasury market to do that, which is liquid.
00:01:11
Speaker
You know, higher rate, but obviously you have our management fees and different things in there as well to think about. But yeah, banks have been offering higher rates. You know, betterment.com is another place we've kind of gravitated towards for people with like an emergency fund under 25,000.
00:01:29
Speaker
They're paying 3.75%. FDIC insured, fully liquid, pays monthly.
Optimizing Cash for Liquidity and Yield Options
00:01:36
Speaker
So there's a lot of options out there. We feel like we have a competitive option with the treasury market. So we can give you more information on that. But yeah, you can earn yield on your money now. And you should be making sure all of your cash is optimized as you can for your liquidity needs.
00:01:56
Speaker
There are CDs out there that are more competitive now. I think that's what I want to talk through of this whole one. It's important that your money makes money. This has been a foreign concept for many years because interest rates have been next to zero. There really has been no
00:02:14
Speaker
I guess incentive to put it in any risk. Well, a lot of people would then like, let me just go buy CDs at the bank. Well, they're not that liquid. And as you know, as business owners, the biggest thing is liquidity. And so now we can offer liquidity as well as getting 4% yield on your money. And when it's just sitting there, that's actually not a bad rate of return.
Profitability Boost Through Better Fund Management
00:02:39
Speaker
It hasn't been the case for many, many years. This is actually helping a lot of business owners manage their money better as well as just make things more profitable so they're just not sitting there in cash doing nothing.
00:02:59
Speaker
So yeah, I don't know that we need to beat this one to death. It's, I think, pretty obvious to a lot of people. And if you need help putting cash to work, obviously we'd love to talk you through that. And if not, find somebody, find someplace that can provide that yield. Awesome. Thanks for listening. You've been listening to Uncommon Wealth Podcast. I've been your host, Phillip Ramsey. And I'm Brian Dewhurst. Until next time, go be in common. Thanks. Thanks everybody.
00:03:25
Speaker
That's all for this episode, brought to you by Uncommon Wealth Partners. Be sure to visit uncommonwealth.com to learn more about our services. Don't miss an episode as we introduce you to inspiring people who are actively pursuing an uncommon life.