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Is your cash working for you? | From the desk of Glenn Leest

Is your cash working for you?

Are you looking to earn more interest on your cash? Are you intrigued by earning a 5% interest rate or more? If you are, then keep reading because I have some great news for you.

For years, we've all grown accustomed to our cash earning fractions of a percent in interest. If you look at interest rates in 2019 and 2020, you'd be hard-pressed to find a high-yield savings account paying over 0.50% (APY). Most checking accounts and bank CDs were paying just a tenth of that, earning around 0.05% APY. With interest rates so low, an acronym attributed to the stock market was born: TINA, There Is No Alternative. The only place for an investor to have a chance of generating a positive real return was in equities, and this helped fuel the stock market rally from the Covid-19 lows in March of 2020 to the peak of the market in December of 2021.

In response to soaring inflation over that same period, the FOMC began aggressively raising interest rates. As we saw in 2022, the resulting inverted yield curve wreaked havoc on the stock market, but it has left us with the silver lining that there is an alternative to stocks that hasn't existed for years. One result of the FOMC raising rates is an inverted yield curve. There is endless literature that has been written on inverted yield curves, but the take-away today is how attractive the 3-month to 9-month rates are, shown in the table below.

  CD Rates as of 6/20/2023
3 Months 5.458%
6 Months 5.421%
9 Months 5.385%
1 Year 5.300%
2 Years 4.900%
5 Years 4.450%

An investor must no longer lock up their cash for 24, 36, or 60 months to earn a measurable yield when CD rates at a year or less are currently earning over 5.3% APY. Sounds good right? Depending on your needs, we can build a cash management strategy to put your cash to work for you. I'll briefly describe 3 different cash management strategies that may suit your specific needs.

CD Ladder

A CD ladder involves buying at least two different duration CDs, say 3 and 6-months. Every three months, when a CD matures, we roll it out into another 6-month CD. This provides you with quarterly interest payments, and a quarterly opportunity to withdraw from the strategy. FDIC insured CDs are considered very safe, and if held to maturity, your principal investment is guaranteed.

Hi-Yield Cash Management

If you require more immediate access to your cash and do not want to be restricted to cash flow at predetermined CD maturity dates, WT Wealth Management's (WTWM's) Hi-Yield Cash Management strategy provides a diversified portfolio of fixed income ETFs tactically managed by WTWM's Investment Committee. This portfolio currently focuses on short and ultra-short duration ETFs. With an average maturity of less than 1 year, this portfolio is currently yielding over 6.3% with minimal expected price volatility. If a cash need arises, funds from the Hi-Yield Cash Management strategy can be accessed more quickly and easily than a CD.

Cash-Equivalent ETF

If you're looking to add a cash-equivalent to your existing portfolio, we can recommend to you a single holding that complements your existing portfolio and meets your specific investment objectives.

Please contact me today to further discuss how we can put your cash to work for you.

We can easily setup a Schwab or TD Ameritrade account for you that is separate from your other investment accounts for this purpose. Whether for your emergency fund or extra cash sitting on the sidelines, we can discuss a cash management strategy that works for you. Finally, There Is An Alternative.
Call or email me to setup a time to discuss in more detail.


Gleen Leest
Glenn Leest
Senior Investment Advisor
(928) 225-2474

Jargon Breakdown

APY - The annual percentage yield (APY) is the real rate of return earned on an investment, taking into account the effect of compounding interest.

CD - A certificate of deposit (CD) is a savings product that earns interest on a lump sum for a fixed period.

ETF - An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can.

FDIC - An FDIC insured account is a bank or thrift account covered by the Federal Deposit Insurance Corporation (FDIC), an independent federal agency responsible for safeguarding customer deposits in the event of bank failures. The maximum insurable amount in a qualified account is $250,000 per depositor, per FDIC-insured bank and per ownership category.

FOMC - The term Federal Open Market Committee (FOMC) refers to the branch of the Federal Reserve System (FRS) that determines the direction of monetary policy in the United States by directing open market operations (OMOs). The committee is made up of 12 members, including seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining 11 Reserve Bank presidents, who serve on a rotating basis.

Inverted Yield Curve - An inverted yield curve shows that long-term interest rates are less than short-term interest rates. With an inverted yield curve, the yield decreases the farther away the maturity date is.

YTM - Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures.


What Is APY and How Is It Calculated With Examples

What Is a Certificate of Deposit (CD) and What Can It Do for You?

Exchange-Traded Fund (ETF) Explanation With Pros and Cons

FDIC Insured Account Definition, Requirements, Pros/Cons

Federal Open Market Committee (FOMC): What It Is and Does

Inverted Yield Curve: Definition, What It Can Tell Investors, and Examples

Yield to Maturity (YTM): What It Is, Why It Matters, Formula

BlackRock Ultra Short-Term Bond ETF (PDF)

Certificates of Deposit (CDs)


There are no warranties implied.
Any opinions expressed on this website are the opinions of WT Wealth Management and its associates only. Material listed on this website is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. You should always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETF’s carry certain specific risks and part or all of your account value can be lost.

At WT Wealth Management we strongly suggest having a personal financial plan in place before making any investment decisions including understanding your personal risk tolerance and having clearly outlined investment objectives.

View Disclosure
WT Wealth Management is an SEC registered investment adviser, with in excess of $100 million in assets under management (AUM) with offices in Flagstaff, Scottsdale, Sedona and Tucson, AZ along with Jackson Hole, WY and Las Vegas, NV. WT Wealth Management is a manager of Separately Managed Accounts (SMAs). With SMAs, performance can vary widely from investor to investor as each portfolio is individually constructed and managed. Asset allocation weightings are determined based on a wide array of economic and market conditions the day the funds are invested. In an SMA, each investor may own individual Exchange Traded Funds (ETFs), individual equities or mutual funds. As the manager we have the freedom and flexibility to tailor the portfolio to address an individual investor's personal risk tolerance and investment objectives – thus making the account “separate” and distinct from all others we manage. An investment with WT Wealth Management is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Any opinions expressed are the opinions of WT Wealth Management and its associates only. Information offered is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. Always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETFs carries certain specific risks and part or all of an account's value can be lost. In addition to the normal risks associated with investing, narrowly focused investments, investments in smaller companies, sector and/or thematic ETFs and investments in single countries typically exhibit higher volatility. International, Emerging Market and Frontier Market ETFs, mutual funds and individual securities may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability that other nations experience. Individual bonds, bond mutual funds and bond ETFs will typically decrease in value as interest rates rise. A portion of a municipal bond fund's income may be subject to federal or state income taxes or the alternative minimum tax. Capital gains (short and long-term), if any, are subject to capital gains tax. Diversification and asset allocation may not protect against market risk or investment losses. At WT Wealth Management, we strongly suggest having a personal financial plan in place before making any investment decisions including understanding personal risk tolerance, having clearly outlined investment objectives and a clearly defined investment time horizon. WT Wealth Management may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption. WT Wealth Management's website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of WT Wealth Management's website should not be construed by any consumer and/or prospective client as WT Wealth Management's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the internet. Any subsequent, direct communication by WT Wealth Management with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of WT Wealth Management's current written disclosure statement discussing WT Wealth Management's registrations, business operations, services, and fees is available at the SEC's investment adviser public information website (www. or from WT Wealth Management directly. WT Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WT Wealth Management's web site or incorporated therein, and takes no responsibility therefor. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

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