Three Smart Ways to Store Cash This Year

Looking for smart ways to store cash this year? Here are three ways to profit off interest-earning investments.

A woman holds a pile of cash.
(Image credit: Getty Images)

I never prescribe one overall asset-allocation formula because no such solution suits everyone. That includes the popular 60-40 stocks-to-bonds ratio, which advisers frequently recommend to retirees or preretirees who are afraid to lose principal but still need growth alongside immediate income. I also avoid dictating how much cash to hold, unless your answer is 100% — especially if you limit yourself to money market funds, Treasury bills and bank deposits. The closest I shall venture to a 2024 forecast is that those 5% risk-free yields will not vanish before summertime. 

However, there is another, often overlooked cash-management opportunity you can employ after you decide what percentage of your portfolio to keep in ready money: how best to distribute savings in interest-earning investments. 

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Jeffrey R. Kosnett
Senior Editor, Kiplinger's Personal Finance
Kosnett is the editor of Kiplinger's Investing for Income and writes the "Cash in Hand" column for Kiplinger's Personal Finance. He is an income-investing expert who covers bonds, real estate investment trusts, oil and gas income deals, dividend stocks and anything else that pays interest and dividends. He joined Kiplinger in 1981 after six years in newspapers, including the Baltimore Sun. He is a 1976 journalism graduate from the Medill School at Northwestern University and completed an executive program at the Carnegie-Mellon University business school in 1978.