In today’s financial landscape, one of the most overlooked opportunities is the money sitting quietly in your checking account — or even in low-yield savings — earning next to nothing.
While having cash on hand for emergencies is essential, leaving too much idle can silently erode your wealth. If you’re comfortable, that’s not a place you want to be. There are plenty of options to help fix this, and here are some reasons why you may want to consider them.
1. Inflation never sleeps
Every year, inflation reduces the purchasing power of your dollar. At 3% inflation, $100,000 in idle cash loses about $3,000 in real value annually. By not putting those funds to work, you’re effectively giving away part of your future spending power. Inflation has dominated headlines for 3.5 years now, with a peak in June 2022 of 9.1%. Today, it sits at a more historical average rate of 2.7%.
2. Opportunity cost is real
Cash that isn’t invested or allocated toward higher-yielding vehicles misses the potential to grow or simply outpace inflation. Whether it’s in short-term Treasuries, high-yield savings, money market funds, or diversified investments, every dollar should have a job. That job is to work for you.
3. Flexibility without sacrificing returns
Many people keep excess cash for “flexibility.” The good news? You can maintain liquidity and still earn competitive returns. Tools like short-term CDs, Treasury bills, or money market accounts allow you to access your funds quickly while typically earning more than traditional checking or savings accounts. Having quick access to this cash allows you to make money without sacrificing that flexibility. Part of the hurdle that needs overcoming is that comfort factor. It’s still safe, but at least it’s working for you.
The bottom line: Cash is a tool, and a well-structured financial plan helps ensure your dollars are actively working toward your goals — whether that’s growth, income, or future opportunities — without compromising your safety net.
It’s not just about having money. It’s about making sure every dollar you have is pulling its weight for you. Sometimes being uncomfortable is where you need to be.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. To view form CRS visit https://bit.ly/KF-Disclosures.
Eric is President and founder of Reich Asset Management, LLC. He relies on his 25 years of experience to help clients have an enjoyable retirement. He is a
Certified Financial Planner™ and Certified Investment Management AnalystSM (CIMA®) and has earned his Chartered Life Underwriter® (CLU®) and Chartered Financial Consultant® (ChFC®) designations.
