No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Sunday, October 5, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Financial Planning Personal Finance

Where to Park Cash if You’re Worried about the Stock Market

by TheAdviserMagazine
4 months ago
in Personal Finance
Reading Time: 8 mins read
A A
Where to Park Cash if You’re Worried about the Stock Market
Share on FacebookShare on TwitterShare on LInkedIn


The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

In recent weeks, 44% of Americans in households making $125,000 or more say they’ve put more cash aside to cover future expenses. That’s according to the Conference Board’s May Consumer Confidence report.

But are they investing it?

“Keeping money in cash forever isn’t a plan,” says Rebecca Palmer, a certified financial planner in Washington, D.C., and head of guidance for financial planning platform Fruitful.

“It’s actually postponing a plan,” she says.

More than a third (37.7%) of consumers expect stock prices to decline over the next 12 months, according to the report. That’s a more optimistic number than April’s 47.2%, but still higher than the 23.7% who expected a drop in January.

“There’s definitely a feeling of fear in the markets right now,” Palmer says. “A lot of people are feeling this, [and] it’s OK.”

But she emphasizes that fear is a starting point, not a strategy.

Why are people nervous about the market?

Turbulence has contributed to people’s investing anxiety. According to some measures, the level of stock market volatility in April was at its highest point since 2020.

Today’s investors are also knee-deep in alarming headlines and social media doom, Palmer says.

“They just have a lot more overwhelm to deal with than prior generations did, even if it’s the same kind of market turbulence that happens,” she says.

But keeping money in a checking account, earning no interest (or in a pillowcase, you know who you are) can put you at a disadvantage.

“You’re losing money to inflation,” Palmer says.

Where can you put your money?

If the stock market is making you uneasy, or you’re keeping money accessible for a nearer-term goal, here are a few places you can consider putting your cash to earn interest and stay ahead of rising consumer prices.

High-yield savings accounts

Potential interest rate: 4%+

High-yield savings accounts offer higher interest than savings accounts at traditional banks. Many banks offering these rates are online, and if they’re FDIC-insured, they offer the same protections for your money as brick-and-mortar banks.

“If you can get 4% on your savings, or even 3.8%, versus the point-nothing that one of the big brick-and-mortar banks are going to have, then take the better rate,” says Cindy Sforza, a CFP with Lucidity Wealth Advisors in Brea, California.

Bank certificates of deposit (CDs)

Potential interest rate: 4%+

A certificate of deposit (CD) is a short-term savings account that allows you to lock in an interest rate for a certain time period — i.e., six to 12 months, with some terms as long as five years.

The trade-off is that your money is also locked in; you’ll pay a penalty if you withdraw early.

When CD interest rates are higher than other savings accounts, this can be an easy way to earn some interest. But when CD interest rates match what you’ll find in other short-term places, it may not be worth committing, Sforza says.

“Frankly, CD rates today are pretty close to what you can get in a high-yield savings account anyway, and a CD is a time commitment,” Sforza says. “Just do your rate shopping, and see if it makes sense to tie it up in a CD.”

Your goals will determine your choice — if you need to keep the money accessible, a CD might not be your top pick.

Money market accounts

Potential interest rate: 3.5% – 4.4%

A money market account is a savings account that offers a higher interest rate than traditional savings accounts, along with limited check-writing and debit card access to your funds. Money market rates may not match the best high-yield savings accounts, but HYSAs typically don’t offer checks or debit cards.

“[Money market accounts] might give you a slightly lower rate on your money because it’s a little bit more accessible versus the savings account,” Sforza says.

Treasury bills

Potential interest rate: 4%+

Treasury bills, or T-bills, are government-backed investments with terms ranging from four weeks to one year. You can buy T-bills from a bank or brokerage, or invest directly through TreasuryDirect.gov.

“It’s not the greatest website in the world,” says John Bell, a CFP with Free State Financial Planning in Columbia, Maryland.

But if you link your bank account to the site, he says, you have the option to invest in your T-bill of choice — and to have your money automatically reinvested when that T-bill matures, if desired.

Another relatively new option available is a Treasury account, which is offered at some brokerage firms and does the work of buying T-bills for you, holding them to maturity, and then reinvesting the profits.

(NerdWallet has a partnership with Atomic Treasury to offer a Treasury account. Public, an online broker NerdWallet reviews, also offers a Treasury account.)

The advantage of Treasury bills, aside from their low risk and the fact that they’re government-secured, is that the interest you earn is state and local tax-free.

“So you’re getting a little bit more yield there too, especially if you’re in a high tax state,” Bell says.

Many brokers also offer a Treasury exchange-traded fund (ETF) or index fund that lets you invest in a basket of different Treasury products.

What’s the bottom line?

Although the methods above will earn interest, they’re not the best solution for long-term savings and investing, Sforza says. If it’s money you’re not going to touch for at least five years, you’re probably better off investing it, she says.

“Yes, the market goes up and down, but that’s your long-term money,” she says. “That’s not the money you’re relying on tomorrow to pay your bills.”

If the idea of the stock market stresses you out, consider letting your portfolio do the work for you. Index funds, index ETFs and target-date retirement funds are an easy way to dip your toes in the investing waters, Sforza says.



Source link

Tags: cashmarketparkstockworriedyoure
ShareTweetShare
Previous Post

Large Heating Pad only $13.99, plus more!

Next Post

Key takeaways from JM Smucker’s (SJM) Q4 2025 earnings report

Related Posts

edit post
Our Favorite Zucchini Bread Recipe

Our Favorite Zucchini Bread Recipe

by TheAdviserMagazine
October 4, 2025
0

Got extra zucchini? This easy zucchini bread recipe is the perfect way to use it up! Moist, lightly-spiced, and made...

edit post
Shop Your Way Mastercard to be Discontinued

Shop Your Way Mastercard to be Discontinued

by TheAdviserMagazine
October 4, 2025
0

Starting Nov. 3, 2025, the card will be rebranded, and existing holders will be sent a different Citi-issued Mastercard with...

edit post
*HOT* Extra 50% off Gap Factory Clearance + Free Shipping = Prices from .99 shipped!

*HOT* Extra 50% off Gap Factory Clearance + Free Shipping = Prices from $3.99 shipped!

by TheAdviserMagazine
October 3, 2025
0

Wow! Don’t miss this hot deals at Gap Factory! Gap Factory is offering an extra 50% clearance items automatically at...

edit post
Barclays AAdvantage Aviator Cards Close to New Applicants

Barclays AAdvantage Aviator Cards Close to New Applicants

by TheAdviserMagazine
October 3, 2025
0

As of October 2025, the popular AAdvantage® Aviator® Red World Elite Mastercard® — along with Barclays’ entire suite of American...

edit post
Mucinex Instasoothe Sore Throat Relief Lozenges, 40-Count only .36 shipped!

Mucinex Instasoothe Sore Throat Relief Lozenges, 40-Count only $2.36 shipped!

by TheAdviserMagazine
October 3, 2025
0

Stock up on these Mucinex Instasoothe Lozenges with this great price! Amazon has these Mucinex Instasoothe Sore Throat Relief Lozenges,...

edit post
Creamy Chicken Gravy and Rice ( Family Dinner Idea)

Creamy Chicken Gravy and Rice ($10 Family Dinner Idea)

by TheAdviserMagazine
October 2, 2025
0

Looking for a delicious, budget-friendly meal the whole family will love? This creamy chicken and gravy with rice is a...

Next Post
edit post
Key takeaways from JM Smucker’s (SJM) Q4 2025 earnings report

Key takeaways from JM Smucker’s (SJM) Q4 2025 earnings report

edit post
Ahead of Tesla robotaxi launch, residents in one Austin neighborhood say Model Ys—with drivers—are circling their blocks over and over

Ahead of Tesla robotaxi launch, residents in one Austin neighborhood say Model Ys—with drivers—are circling their blocks over and over

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Tips to Apply for Mental Health SSDI Without Therapy

Tips to Apply for Mental Health SSDI Without Therapy

September 19, 2025
edit post
DC’s shutdown hasn’t stopped the stock market. Here’s what may

DC’s shutdown hasn’t stopped the stock market. Here’s what may

0
edit post
Earnings Summary: AngioDynamics (ANGO) reports Q1 loss; sales up 12.2%

Earnings Summary: AngioDynamics (ANGO) reports Q1 loss; sales up 12.2%

0
edit post
Links 10/4/2025 | naked capitalism

Links 10/4/2025 | naked capitalism

0
edit post
Key Price Breakout Sets Dogecoin On 153% To Clear alt=

Key Price Breakout Sets Dogecoin On 153% To Clear $0.65 In Quick Succession

0
edit post
Why Your Retirement Party Might Be Cheaper Than You Think — And Smarter Too

Why Your Retirement Party Might Be Cheaper Than You Think — And Smarter Too

0
edit post
Bajaj Finance Q2 update: AUM grows 24% YoY, deposit book surges over 5%

Bajaj Finance Q2 update: AUM grows 24% YoY, deposit book surges over 5%

0
edit post
Key Price Breakout Sets Dogecoin On 153% To Clear alt=

Key Price Breakout Sets Dogecoin On 153% To Clear $0.65 In Quick Succession

October 4, 2025
edit post
Robert Kiyosaki Wants to Vomit as Buffett Words Signal Crash Ahead, Doubles Down on Bitcoin

Robert Kiyosaki Wants to Vomit as Buffett Words Signal Crash Ahead, Doubles Down on Bitcoin

October 4, 2025
edit post
During a White House meeting, Hakeem Jeffries spotted a ‘Trump 2028’ hat and asked JD Vance ‘Hey, bro, you got a problem with this?’

During a White House meeting, Hakeem Jeffries spotted a ‘Trump 2028’ hat and asked JD Vance ‘Hey, bro, you got a problem with this?’

October 4, 2025
edit post
Stablecoin Yield Means Banks Must Now offer Customers Real Interest

Stablecoin Yield Means Banks Must Now offer Customers Real Interest

October 4, 2025
edit post
Trump to federalize 300 members of the Illinois National Guard ahead of expected deployment to Democratic state

Trump to federalize 300 members of the Illinois National Guard ahead of expected deployment to Democratic state

October 4, 2025
edit post
Our Favorite Zucchini Bread Recipe

Our Favorite Zucchini Bread Recipe

October 4, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Key Price Breakout Sets Dogecoin On 153% To Clear $0.65 In Quick Succession
  • Robert Kiyosaki Wants to Vomit as Buffett Words Signal Crash Ahead, Doubles Down on Bitcoin
  • During a White House meeting, Hakeem Jeffries spotted a ‘Trump 2028’ hat and asked JD Vance ‘Hey, bro, you got a problem with this?’
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.