The Time Freedom Podcast

Where to Keep Cash So You Can Pounce

Episode Summary

Three days after a place on Lake Seventeen unexpectedly went up for sale, Brian and Claire had their offer accepted, because the cash to move on it was already sitting ready. On today's podcast, Brian and Kirby dig into a topic that sounds boring on paper: where to store your cash. Cash savings is a key component of the Time Freedom Portfolio, and in this episode we talk tactics: exactly where to put it so it's usable the moment an opportunity (or emergency) shows up.

Episode Notes

Three days after a place on Lake Seventeen unexpectedly went up for sale, Brian and Claire had their offer accepted, because the cash to move on it was already sitting ready. On today's podcast, Brian and Kirby dig into a topic that sounds boring on paper: where to store your cash. Cash savings is a key component of the Time Freedom Portfolio, and in this episode we talk tactics: exactly where to put it so it's usable the moment an opportunity (or emergency) shows up.

➡️ Get the guide to Good Cash Savings Accounts: https://timefreedom.life/resources

➡️ Buy TIME FREEDOM, the Book: https://timefreedom.life/book

In this episode... Brian revisits the case for holding more cash than most financial advice recommends, then walks through nine specific places to put it, grouped into four categories: bank accounts, brokerage cash and money market accounts, treasuries, and CDs. He and Kirby also discuss why convenience matters more than chasing the highest interest rate, and a brokerage sweep account trap to watch out for.

Top 5 Takeaways:

  1. Cash reserves are optionality, not idle money. Brian and Claire bought their new cabin on Lake Seventeen within three days of it hitting the market, only possible because the cash was already sitting there, ready to move.
  2. Hold more cash than typical advice suggests. Brian recommends 10-30% of your portfolio, or six months to two years of expenses, and says you'll know it's right when you feel equally uncomfortable about having too much and too little.
  3. Convenience beats interest rate. A 0.2% difference in APY matters far less than how fast you can actually get the money when you need it.
  4. There are nine places to hold cash across four categories. High-yield savings accounts, credit unions, brokerage money market accounts, treasury ETFs like SGOV and BIL, and CDs all serve different tradeoffs between access and yield.
  5. Watch your brokerage's default cash sweep. Charles Schwab's default sweep account pays a fraction of what's available elsewhere in the same brokerage. You have to manually move it to a higher-yield option, and that gap is exactly how they profit.

Chapters: 

Chapters

00:00 Introduction to cash management and opportunities
02:48 Recent cabin purchase on Lake Seventeen and financial freedom
08:03 Episode overview and upcoming book launch discussion
11:02 How much cash to hold for financial stability
12:20 Interest rates and where to put your cash
15:13 Categories of cash accounts and their benefits
20:44 Inside brokerage accounts and cash storage options
22:44 Treasuries and T-bills for short-term savings
24:53 Using CDs and ladder strategies for longer-term savings
27:56 Key takeaways: most convenient and safe cash options
 

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