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If you are like most individuals or business owners you are looking for ways to generate good returns while safeguarding your investments during uncertain financial times. That’s where cash strategies might be helpful. On the most recent episode of Your Money. Your Mission., Eric Bernal and Luke Kasten from Johnson Financial Group, address several scenarios raised by callers that help shed light on the importance of talking to your financial advisor about how cash strategies can be used based on your unique situation.

Let's dive into the key takeaways and the significance of effective cash strategies in uncertain times.

Capitalizing on Rising Interest Rates

The discussion begins with Richard, who has a surplus of funds generated by his family business and is seeking strategies to preserve capital while taking advantage of higher interest rates. Eric emphasizes the importance of optimizing yields on safer investments, given the current favorable environment. Dependent on each individual’s situation, structuring fixed-income cash management solutions using instruments like CDs and treasuries might be helpful. These investments align with the cash flow needs and risk tolerance of clients, offering both safety and potential returns.

Short-Term Strategies for Pre-Retirees

Tara, a caller closer to retirement, is concerned about protecting her savings while not missing out on growth opportunities. Luke addresses her question by emphasizing the importance of understanding one's timeframe and goals. He suggests using cash strategies, such as CDs and money markets, for short-term financial needs. CD ladder strategies are particularly useful in earning different rates over varying terms while maintaining liquidity. Beyond the short term, partnerships with financial advisors can help individuals explore long-term investment options.

Building Emergency Funds with Conservative Investments

Kimberly and her husband want to prepare for future emergencies without compromising on returns. They are considering a line of credit but are also seeking suggestions for conservative investment options. Luke discusses the versatility of lines of credit, which can be leveraged for various needs. To build emergency funds, it's crucial to prioritize an emergency account with a few months' worth of expenses. Once that's established, individuals can explore other investment options that align with their risk tolerance and financial goals.

The Power of Cash and Financial Planning

Both Eric and Luke stress the importance of having a well-structured financial plan. A solid plan acts as a roadmap, guiding individuals and businesses to allocate their resources effectively. Segmentation of assets into short-term, intermediate, and long-term buckets ensures that each financial need is addressed appropriately. This approach minimizes the risk of making hasty financial decisions that could negatively impact long-term goals.

Navigating Opportunity Costs

Eric acknowledges the concern about opportunity costs when holding cash. He highlights the significance of understanding the current economic environment, especially in terms of interest rates. An inverted yield curve means short-term investments can offer higher returns compared to long-term ones, which could influence investment decisions. However, Eric advises individuals to discuss their cash needs and investment objectives with their advisor to strike the right balance.


Effective cash management and investment strategies are essential components of any comprehensive financial plan, especially in today's unpredictable market conditions. Whether you are a business owner with surplus cash or an individual, understanding your financial goals, timeframes, and risk tolerance is crucial. By working with experienced financial professionals to develop a well-structured financial plan, you can be prepared to navigate the complex world of cash strategies and make informed decisions that lead to a more secure financial future.

Additional Episodes

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Becky McClelland
Becky McClelland, AVP Private Banking, Kenosha, WI

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