Why Cash Ain’t Trash (or King)

Read time: 3 minutes

Good morning,

Welcome to 2023.

Next December, when you look back on this year, I hope you’ll be proud of the financial strides you’ve made.

The best time to start is today.

Without further ado, your Tuesday newsletter.

“Cash is the ultimate defense against financial risk.”

Read This 👀

IRS changes for 2023 may boost paychecks and cut taxes (Axios)How to increase your returns with 1 simple action (Windgate)Many rookie “traders” are calling it quits after realizing they’re bad at it (WSJ)How the United States can solve its housing crisis (WaPo)Ideas that can change your life (Collab Fund)How to have a million bucks by 30 (Financial Samurai)Workers who stay in their jobs are getting the largest pay raise in decades (WSJ)

Not That 🙅🏼‍♂️

Here are the 6 market sectors Wall Street is bullish on in 2023 (BI)Here’s how much financial pros expect the market to rebound in 2023 (Barron’s)

Tip 🔥

Hold some cash, but not too much.

Holding some cash provides peace of mindIf you have cash savings, you won’t need to sell investments to come up with moneyCash increases your flexibility – whenever possible, avoid making decisions with your back against the wallStore cash in a high-yield savings accountOver allocating to cash will hurt your returns due to inflationHolding cash to “buy the dip” may cause you to miss the best days in the stock market

Q&A 🤔

Q: “I got a holiday bonus and want to open a high-yield savings account. What’s your take on Wealthfront vs. a traditional bank?”

Me: Congrats on the bonus!

I use Wealthfront and I think it’s a great option given the interest rate, investment offerings (IRA, brokerage, 529, etc.), and user interface (I like the net worth estimator). That said, there are other great options for high-yield savings accounts too.

If you have your savings account with a big bank like Wells Fargo, Chase, or B of A, I’d ditch them immediately. They pay you almost nothing and have a pretty awful track record of customer support.

If you’d like to join Wealthfront, you can earn $30 for free when you sign up here.

Otherwise, check out the link below for some other solid options 👇

Have a question for me? Respond to this email and I’ll include it in a future newsletter.

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Extra Fun 🤪

Remember when I told you that forecasts are bullshit?

I’ve seen a lot of financial writers asking questions like: “WiLl sTocKs BoUncE BaCk iN 2023?”

Personally, I think that’s a stupid question. Here are ten questions that will actually help you make more money in 2023.

It would mean the world if you could share this newsletter with one of your friends. It’s easy – copy your referral link above and drop it in a group chat.

Currently, I’m offering $5 to Amazon for 2 referrals and $20 to Amazon for 5 referrals. I’ll work on some new rewards later this year, so let me know if there’s anything you’d like to see offered (merch, resources, etc.).



PS: If you think your stock-picking will beat a portfolio of low-cost index funds, I’ve got some magic beans to sell you.

Disclaimer: This newsletter is strictly informational. It is not investment advice, tax advice, financial advice, or a solicitation to buy/sell any assets. Please do your own research. You’re an adult and you’re responsible for your own decisions. This newsletter may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links (at no cost to you).