Inflation is still outpacing wages

Consumer prices rose 3.4% in July 2026, but average hourly earnings fell 0.2% after adjusting for inflation. Workers are making more dollars but those dollars stretch less far.

Savings accounts are earning dead money

If your savings account pays less than the inflation rate, your money is losing purchasing power even as the dollar amount grows. The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures index, rose 3.7% in July.

Financial advisors are rethinking cash placement

Advisors are moving away from traditional savings accounts and looking for places that preserve purchasing power instead of letting savings become what one advisor called dead money.

“"dead money"”

Cut expenses before touching investments

Andrew Fincher, a certified financial planner at VLP Financial Advisers, says inflation has changed how people think about spending. He's become more focused on cash flow efficiency and reviewing recurring expenses.

Advisors are eliminating discretionary services

Andrew Herzog canceled his family's lawn treatment and fertilization service, deciding that pursuing a perfect lawn is no longer viable in an inflationary environment.

Delaying major purchases and splurges

Nicholas Bunio from Retirement Wealth Advisors has postponed buying new golf irons and a telescope. His family also changed their dining habits, going out only for special occasions instead of random days, saving thousands annually.

Treasury yields are now competitive

As of September 2026, three-month Treasury yields were around 3.9% and six-month Treasurys around 4.0%. These government-backed securities offer low-risk returns that can help preserve purchasing power.

Move cash into shorter-duration Treasurys

Jeff Judge, a certified financial planner at Chesapeake Financial Partners, shifted cash into shorter-duration Treasurys and I bonds when rates were favorable, avoiding holding two years of cash in a savings account earning nothing.

“"didn't rebalance out of equities, but I made sure I wasn't holding two years of cash in a savings account earning nothing. That's dead money right now."”

High-yield savings accounts beat traditional rates

High-yield savings accounts like Wealthfront Cash Account offer around 3.30% base APY, which is 10 times the national deposit savings rate. They provide competitive returns while keeping money accessible for emergencies.

Consider Treasury bills and money markets

Catherine Valega from Green Bee Advisory recommends money markets, Treasury bills, and CDs for short-term cash, then adding more stocks as your time horizon extends beyond three years.

Certificates of deposit offer steady returns

CDs let you lock in higher interest rates than traditional savings accounts in exchange for keeping money deposited for a fixed period. They're a low-maintenance way to put idle cash to work while preserving principal.

Fixed annuities provide guaranteed growth

Fixed annuities guarantee a fixed rate of return for a set term, similar to CDs but often with higher rates. Some providers offer rates up to 5.45%, more than three times the national CD average, with built-in principal protection.

Gold can hedge against inflation

Gold has long been viewed as a hedge against inflation. While it doesn't generate interest or dividends, its value can rise when investors seek safe havens during economic uncertainty.

Gold IRAs offer tax-advantaged exposure

A gold IRA lets retirement savers get exposure to physical gold inside a tax-advantaged account. This combines the inflation-hedging benefits of gold with the tax advantages of an IRA.

Find an advisor aligned with your goals

A good financial advisor is someone you'd confidently recommend to people closest to you. If you're hesitant, it may be time to find another professional who will keep you on track to reach your financial goals.

Complex portfolios need strategic planning

As wealth grows, investors face increasingly complex decisions around taxes, withdrawals, and portfolio allocation. Managing these challenges requires greater coordination and strategic planning than basic investment advice.

Match with vetted advisors for large portfolios

Platforms like WiserAdvisor can connect investors with portfolios of $250,000 or more to vetted professionals who specialize in complex financial planning and wealth management.