Boost Returns on Cash With Higher Yields: CLA Wealth Advisors

Key insights

Interest rates above 5% are back to their long-term averages.
Review your excess cash to determine if it is earning market rates — and make necessary adjustments to avoid leaving money on the table.

Is your money earning the yields it should?

If you haven’t been paying attention, interest rates are back to their long-term averages, with short-term Treasuries now yielding over 5%. This is a far cry from December 2021 where these same yields were only 0.05%. Source: Morningstar

Given this significant and rapid rise, you should review your excess cash to determine if it’s earning market rates. The answer might surprise you. Analyzing investment opportunities can be complex, so consider working with an advisor to help navigate your cash management needs.

Earning attractive yields on excess cash

The Federal Reserve raised the federal funds rate by 5.25% over 15 months, which is the most aggressive tightening cycle in the last 40 years, as we noted in our 2024 CLA Outlook. However, while higher rates have created economic headlines, many business owners and individuals are missing a potentially bigger opportunity to earn attractive yields on their excess cash.

Exploring how you may earn higher yields

Earning higher yields a relatively easy proposition.

Using a brokerage account, money market mutual funds or separately managed accounts holding individual Treasuries or municipal bonds are strong options. Both taxable and tax-exempt alternatives are also available, which may be helpful depending on your state jurisdiction.

The chart below showcases representative yields across both taxable and tax-exempt alternatives. Higher yields also come with liquidity, allowing you to access your cash within days, rather than being locked up for years.

Manage your cash effectively

CLA is offering new corporate and individual CLA Wealth Advisory clients a cash management platform with zero wealth advisory fees for the remainder of 2024.¹

See what your cash could yield

Our robust cash management platform offers options by Assets under Management (AUM).

Cash management platform options by AUM

1: The promotional fee waiver applies only to assets that are invested in CLA’s cash solutions listed above. The promotional fee waiver is valid through December 31, 2024.

2: Rates are reflective of FDIC’s National Rates and Rate Caps update from June 17, 2024.

3: Limitations on availability will depend on account type opened but solutions exist for all clients subject to certain minimum investment levels. Solutions refer to actual Money Market and Separately Managed Account (SMA) solutions available on CLA's custodial platform. Product specifics available upon request.

4: All yields are representative only and are as of June 12, 2024. Past performance is no guarantee of future results. Performance experienced by investors may vary significantly.

5: Gross Taxable Equivalent Yield calculation is based on the current yield with the top Federal tax rate of 40.8% (37% plus Affordable Care Act (ACA) 3.8%) applied. State and local taxes, if applicable, are not considered in this calculation. The calculation is presented for informational purposes only.

6: Solution fee is the fee charged directly to the client by the solution manager. This fee is not a part of this promotion and will be charged to the client in addition to any management fees charged by CLA after expiration of the promotional fee waiver.

7: Promotional fee waiver valid through December 31, 2024.

8: Net Tax equivalent yield is gross tax equivalent yield minus solution fee.

How we can help

You have many cash management options, but it can be challenging to understand which are most effective. Please reach out to us to determine which CLA cash management platform fits your needs, whether for business or individual needs. CLA’s wealth advisors are here to help.

Contact us

Is your money earning the yields it should? Complete the form below to connect with CLA about putting your cash to work.

If you are unable to see the form below, please complete your submission here.