The Long Game Best Places to Park Short-Term Cash (with Ben Lake, CFA®, CFP®)
Jan 16, 2026
In this discussion, Ben Lake, a Chartered Financial Analyst and Certified Financial Planner, shares insights on short-term cash planning. He emphasizes the importance of aligning your money with specific goals like buying a home or starting a business. Ben warns against the risks of chasing market returns with funds earmarked for near-term needs. They also explore the benefits of high-yield savings accounts, tax-efficient options like municipal funds, and the potential pitfalls of CDs and I-bonds, ensuring listeners are equipped to make informed decisions.
AI Snips
Chapters
Transcript
Episode notes
Plan Goals First, Then Park Cash
- Define short-term goals and assign dollar amounts before deciding where to park cash.
- Avoid leaving goal money in checking or a high-risk portfolio that could drop when you need it.
Recent Market Gains Don't Secure Short-Term Goals
- Chasing recent strong market returns for short-term goals is risky and not guaranteed over 12 months.
- Short horizons after big market gains increase the danger of facing a downturn when you need the money.
Prioritize Certainty Over Higher Short-Term Returns
- Prefer certainty for one-to-three-year goals by using low-risk cash instruments instead of equities.
- Accept lower pre-tax returns in exchange for preserving principal and meeting the liability.