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Cash Is Not Trash, but How Long Will It Last?

<p>Cash Is Not Trash, but How Long Will It Last?</p>

The Key Wealth Institute is a team of highly experienced professionals representing various disciplines within wealth management who are dedicated to delivering timely insights and practical advice. From strategies designed to better manage your wealth, to guidance to help you better understand the world impacting your wealth, Key Wealth Institute provides proactive insights needed to navigate your financial journey.

The Fed has begun cutting interest rates, yet cash-equivalent yields are still relatively attractive compared to recent history. See how our leading experts recommend navigating the Fed rate-cutting cycle. Explore detailed planning scenarios that incorporate Key Wealth’s capital market return projections (including our expectations for long-term returns on cash).

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Key Takeaways:

  • Cash equivalents have significantly underperformed both stocks and bonds since 1900.
  • Cash equivalents have barely outpaced inflation over time.
  • Bonds tend to outperform cash equivalents in the first year of a rate-cutting cycle.
  • Diversified portfolios significantly improve long-term financial planning outcomes.
  • Patient investors are generally rewarded.

The Key Wealth Institute is comprised of financial professionals representing KeyBank National Association (KeyBank) and certain affiliates, such as Key Investment Services LLC (KIS) and KeyCorp Insurance Agency USA Inc. (KIA).

Any opinions, projections, or recommendations contained herein are subject to change without notice, are those of the individual author(s), and may not necessarily represent the views of KeyBank or any of its subsidiaries or affiliates.

This material presented is for informational purposes only and is not intended to be an offer, recommendation, or solicitation to purchase or sell any security or product or to employ a specific investment or tax planning strategy.

KeyBank, nor its subsidiaries or affiliates, represent, warrant or guarantee that this material is accurate, complete or suitable for any purpose or any investor and it should not be used as a basis for investment decisions. It is not to be relied upon or used in substitution for the exercise of independent judgment. It should not be construed as individual tax, legal or financial advice.

The summaries, prices, quotes, and/or statistics contained herein have been obtained from sources believed to be reliable but are not necessarily complete and cannot be guaranteed. They are provided for informational purposes only and are not intended to replace any confirmations or statements. Past performance does not guarantee future results.

Investment products, brokerage and investment advisory services are offered through KIS, member FINRA/SIPC and SEC-registered investment advisor. Insurance products are offered through KIA. Insurance products offered through KIA are underwritten by and the obligation of insurance companies that are not affiliated with KeyBank.

Non-Deposit products are:

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