Today we’re talking about something we’re all familiar with, cash. In this episode, we’re going to discuss the role cash plays in an investor’s portfolio and the different places you can put your cash.
A lot of people don’t think they should just have cash sitting around…but Kate & Owen share how it can be used as part of your investment portfolio.
Why is cash part of an investor’s portfolio?
- Defensive asset – part of your diversified portfolio
- Liquidity
- Security
- Government guarantee to $250k → if with an ADI
Transaction accounts
- Day-to-day cash
Savings accounts
- Short-term savings goals
- Emergency fund
Term deposits
- Shorter to medium-term savings goals
- It could be the cash portion of your long-term portfolio
Offset
- Relevant tool for home owners
Cash ETFs like AAA
- ETFs you can buy and sell that gives you access to cash deposits.
- Regular distributions (e.g. monthly)
- AAA: AAA aims to provide exposure to Australian cash deposits, with attractive monthly income distributions that exceed the 30-day Bank Bill Swap Rate (BBSW) (after fees and expenses). Assets are invested in deposit accounts held with selected banks in Australia.
🎟️ We’re going on the road from August – October 2023; get your tickets here!
📚 Enjoyed this episode? You’ll love Kate’s upcoming book, Buying Happiness, which you can preorder on Booktopia or Amazon.
