DYNF - Beyond Money Markets: Maximizing Your Cash

2024-06-28 09:15:00 ET

Summary

• Longer-term government bonds, corporate bonds, and stocks have historically returned more than cash.
• One of the risks of short-term investing is not being able to reinvest the money at the same rate.
• Reinvestment risk is among the biggest challenges of investing in short-term securities, such as money markets, because that money generally has to be reinvested every few months.

While it may seem like a no-brainer to stash cash in money markets right now because of their relatively high interest rates and low risk, it may be time to lock in yields or go for long-term growth. Yes, there can be such a thing as too much cash....

For further details see: