Cash Management Strategy

  • Real estate
  • 4/10/2023

“Cash is king. Get every drop of cash you can get and hold onto it.” Jack Welch, Chairman and CEO of General Electric Historically during times of market uncer...

“Cash is king. Get every drop of cash you can get and hold onto it.”

Jack Welch, Chairman and CEO of General Electric

Historically during times of market uncertainty, real estate clients have generated a significant amount of cash reserves. And while sitting on large piles of cash is never a bad thing, not putting that cash to work might be.

If last you checked, your operating cash was earning something like 0.5%, it’s time to re-evaluate your cash management strategy. The investment landscape has changed and so have the investment products. Through early-April, the yields on U.S. treasury notes/bills, Money Market Accounts and other short-term fixed solutions have significantly exceeded those of traditional checking or savings accounts. And those margins don’t even take into account the potential (Federal and State) tax benefits of certain short-term investments. The opportunity to invest your large cash balances, while preserving precious liquidity, could be a win-win for any real estate client.

CLA Wealth Advisors, LLC wants to help. Please reach out today to learn more!

Thanks to Omer Abramovich and Brandon Knight for their help with this post.

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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