• Wealth Management Division

Short-Term Investments and Cash Management

The most critical characteristic of a cash reserve is its availability in the event of an emergency. And, although a federally insured savings account is one of the safest locations to have money set aside for emergencies, you may want to explore other options available during periods of low-interest rates.

When deciding how to invest your cash reserve, you should weigh the liquidity requirements against the possible profits. Short-term investment products such as Treasury bills, certificates of deposit, and money market mutual funds may provide you with the liquidity you need to pay anticipated and unforeseen expenses while also increasing your short-term investment income.

By aggressively managing your short-term reserves, you may establish a mechanism for future savings. You may spend this money to build your net worth without putting your capital in danger. It's critical to remember that since income and personal circumstances vary, you should assess your cash reserve and its structure on a regular basis.

When considering Treasury notes, remember that these investment products are guaranteed by the United States government's full faith and credit in terms of prompt payment of principal and interest. Other popular short-term investment products are bank certificates of deposits (CD). Bank CDs are covered by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per federally insured institution.

Remember: The Federal Deposit Insurance Corporation or any other government entity does not cover or guarantee money market funds. While money market funds strive to maintain the value of your investment at $1 per share, it is possible to lose money while investing in them. Those who invest in money market mutual funds should carefully read prospectuses, which are used to sell mutual funds. Before investing, please carefully examine the investment goals, risks, charges, and fees. Your financial expert may receive the prospectus, which provides this and other information about the investment firm. Make certain to properly study the prospectus before choosing whether to invest.

Would you like to consult with a financial advisor about cash management and short-term investment solutions?


The material on this page reflects PG Capital's professional opinions as of today and is subject to change. The information presented here has not taken into account any particular investor's investment goals or needs, and investors should not base their investment decisions entirely on this material. Past performance is not a guarantee of future results. All investments involve some amount of risk, and investors have different time horizons, goals, and risk tolerances, so consult with your PG Capital Financial Advisor before proceeding.

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