Market Minute with Wealth E&P - 3/1/23

March 01, 2023
Discussing If You Should Invest Excess or Idle Cash In This Market

 

March 1, 2023

Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this week. My name is Jake Sanders, and I am a partner at Wealth E&P and operate as a Wealth Advisor and Certified Financial Planner. 

Last week a lot of you joined us at our Economic Update Dinners. We will be uploading the recording of this awesome presentation on our website soon. Now, not to spill the beans, but we talked a lot about bad news or bad things in our economy such as the stock market or other things you’re probably aware of. We had to discuss those uncomfortable things about being invested right now. However, we did talk about good things to end the presentation! We discussed some topics that we’re optimistic about and what we think might be good signs for our economy.

I wanted to continue that theme and talk a little bit about some good news today. One of the things I've been getting asked a lot is: “What do I do with idle cash?” Maybe we’re talking about some cash that has some specific purpose for the short-term time horizon, or cash you don't want to put at risk but would like to get some kind of decent return on.

To be honest, for the longest time, we did not have a good answer for that. You'd either have to put that money at risk or you'd have to tie it up, and neither of those were a good solution. However, as of recently, we have a pretty good solution. What I'm showing you below is a chart of the 3 Month Treasury Rate.

 

 


At the beginning of 2022, the 3 Month Treasury rate was yielding less than 0.1% on an annualized basis. That's not even worth talking about. However, as of yesterday, that same yield is now at 4.72% for a 3 Month Treasury. In fact, I actually bought a treasury with a duration of less than a year for a few different clients that are yielding over 5% at this point. So, there are good options if you're one of these people that are sitting on idle cash and are looking for something to do with that.

So, there are good options if you're one of these people that are sitting on idle cash and are looking for something to do with that. If you have questions about that or want to find out more about our process, please feel free to reach out or visit www.wealthep.com. Otherwise, stay tuned for our next Market Minute and our Economic Update Dinner recording! We appreciate you, and we hope you all have a great week.

 

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At Wealth Enhancement & Preservation, we are here to serve as your financial advisor and source of support in the Alpharetta, GA, Cartersville, GA, and Charleston, SC areas. Our advisors are dedicated to simplifying the complexities of the financial world and as your advocate, we strive to learn about your most valued goals and dreams. From individual investors to entrepreneurs, our services are designed for your success.

Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.

 The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

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