Just 31% of those with incomes of $100,000 or more were earning at least 3% on their cash.
"Here's this $17 trillion industry, and almost all of this cash is sitting in the wrong place," said Gary Zimmerman, CEO of MaxMyInterest."Every investor should have their reserve savings working for them," said Max Lane, CEO of Flourish, a fintech company providing a cash management product to advisors.Here are several mistakes with cash that financial advisors say investors should try to avoid.
For savers who are keeping large balances in accounts providing low interest rates, Harrington said he tries to explain to them that they are losing spending power over time. Money earmarked for long-term goals should always be invested in the market, he said. Cash is appropriate for emergency funds and other near-term goals, where the timeline is less than five years."The way your gut feels is usually the exact opposite of the way you should be investing," Harrington said.