How to hold cash in 2025 to build wealth

The Federal Reserve announced an additional 25 basis point cut at its final meeting of 2024 and signaled it will deliver two more rate cuts in 2025. Lower rates impact consumers' mortgages, loans, credit cards, savings accounts, and more. Vanguard head of brokerage and investments Andrew Kadjeski joins Wealth with Alexandra Canal to talk about how consumers should be thinking about their cash holdings and savings as rates come down. "Whenever there's a change in the Fed rate, like occurred earlier this week, we always encourage investors to take a step back [and] look at where they are holding their cash savings," Kadjeski says, adding, "Is it in an account that really meets their needs, particularly to help them reach their savings goals?" As investors weigh how much they should hold in cash versus invest in equities, Kadjeski says, "It's all about finding the right balance because you certainly need to make sure that you have enough cash on hand ... at the same time, you want to make sure you're not holding too much cash." He explains that Vanguard recommends building an emergency savings fund and notes, "You want to be really thoughtful of: What is your goal? What are you saving for? So that you can start putting that money to work, either in a short-term savings account or into a longer-term investment account." To watch more expert insights and analysis on the latest market action, check out more Wealth here.
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[ChristianJacquet]

I am a little worried about growth projections of funds i kept in a HYSA north of 280k, I aim to avoid FOMO. Am I better off investing into Gold as it seems stocks are a little too unstable right now? Will my money keep with inflation?

[maestrovso]

Hold cash while building wealth is oxymoron, like having a cake and eat it too.

[tracybrovan]

Average HYSA now is around 3.80% to 4.25%

[SteveSabbai]

Brick and Mortar banks are giving 0.01% interest rate.
Yahoo! I can retire now!
😂😂😂

[supertodger]

I'm in coffee stocks and Horlicks stocks, makes good return morning and night.

[BhawanaPoudelDevkota]

Everything he just said are common sense. I guess we need expert for instilling common sense nowadays.

[ishudevil]

Always cool and happy to get information of blood donation daily 1 time is called health is wealth information

[Investment-Education-X]

Vanguard money market is yielding 4.47% lol why would you invest in the Vanguard Cash account?

[Coopery]

With the cost of living continuing to rise, it feels like building wealth is harder than ever. I wonder how we should prepare for 2025.

[dinkyshopYT]

No one is addressing what to do since the current criminal admin is looking at killing FDIC insurance. Then what? A run on USA banking system ?

[V.stones]

Consider diversifying your portfolio with a mix of stocks and stable assets. Seeking professional advice now could provide valuable insights and strategies to navigate market uncertainties and protect your investments.

[MOstix]

A commercial for Vanguard. They seem to always steer people into the stock market. In my opinion, the stock market is rigged game.

[paulbarker]

Patiently waiting for a stock market crash

[iBuyBitcoin]

How about researching and buying bitcoin? The best performing asset in the last 11 out of 14 years? Why does that keep getting ignored? Lol

[ghazanferfazli]

Thank you Lord Jesus for the gift of life and blessings to me and my family $14, 120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️