How Can I Better Protect My Cash?

In the United States, when most people put cash in the bank, they assume it’s still going to be there when they wake up the next day. This fundamental assumption was recently tested in the second- and third-largest bank failures in U.S. history.  

The failure of Silicon Valley Bank (“SVB”) on March 10, 2023, and Signature Bank on March 12, 2023, has led many to re-examine their belief that bank deposits are 100% safe and secure.  Since the failure of SVB, many clients have been asking Ballast Rock Private Wealth (“BRPW”) questions like, "Will any more banks fail?” and, more importantly, “Will MY bank fail?” 

At BRPW, we are not bank analysts who can predict which institutions may come under pressure in the future. We are, however, fiduciary advisors. Therefore, we employ multiple “all-weather” strategies to mitigate downside risk to our clients’ financial interests, including cash deposits.  

Cash Management 101

If you are interested in optimizing your cash management, we created this simple guide to help maintain liquidity, earn interest, and better protect your deposits. 

An example of an Insured Cash Sweep.

There are many considerations that go into assessing the suitability of a given cash management option, and the correct choice will depend on each client’s individual circumstances.  

The above is not intended to be an exhaustive list and there are many alternative strategies that were not discussed, e.g., short-term U.S. Treasuries, Certificates of Deposit, and money market funds. Please discuss your individual situation with your financial advisor before making a decision. 

If you’d like to discuss your cash management strategy with one of our team members from Ballast Rock Private Wealth, please contact us at ir@ballastrockpw.com or andrew.mescon@ballastrockpw.com .