Cash isn’t always king; Goldman wealth unit sets record; advisors show election jitters

PORTFOLIO MANAGEMENT: Every financial tool has its pros and cons. Case in point: As a result of the Federal Reserve's sharp and frequent increases to the federal rates in 2022 and 2023, cash investments are now offering yields around 5% — the highest in decades.

This may tempt investors to overweight their allocation to cash investments with the intention of being "less risky" and "more conservative." Why, they may ask their advisor, should I have any allocation to bonds if money market yields are comparable? Caitlin Frederick, CFA, CFP? of Ullmann Wealth Partners takes a look at the short and long answers to that question, addressing how advisors can help clients preserve real value over time — and have meaningful discussions about risk.

Read: Clients want to know: Why buy bonds when 'safe' cash yields 5%?

EARNINGS: Goldman Sachs' revenue from wealth management fees reached a record high in the first quarter as the Wall Street giant completes its pivot away from retail advisory services.

Goldman reported on Monday that it collected $2.45 billion from asset and wealth management fees in the first three months of the year. That was up 18% year over year and set a record for the storied Wall Street dealmaker.

Read: Stepping away from retail advice, Goldman reports record for wealth management

POLITICS AND POLICY: As the U.S. presidential election approaches, many financial advisors are already dreading one possible outcome: not that their preferred candidate will lose, but that the results will be contested.

Forty-five percent of wealth managers say a disputed election would have a negative effect on their business, according to a new survey by Arizent, Financial Planning's parent company.

The survey questioned 1,227 business leaders and professionals across the country, including 164 in wealth management. It also provided some key context to its findings: 87% of wealth managers are dissatisfied with the current political climate, including 70% who are "very dissatisfied."

Read: Almost half of advisors worry about contested presidential election

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