Is your cash
blowing away?

It offers me security

  • To me, cash means safety and security
  • It’s a more reliable way to protect my family's future
  • I invest in my business and have financial investments elsewhere
  • I have a low risk appetite – cash doesn’t perform negatively

It's natural to want to feel secure. Holding a certain amount of money in your account can seem a safe option. Especially if you feel you have enough financial investments elsewhere.

However, holding too much cash can actually be risky. It can expose you to unpredictable currency fluctuations. More importantly, it can prevent you from achieving your investment goals.

Find out what we believe are the two main reasons why you should make better use of your cash.

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Holding excessive cash can make it much more difficult to achieve your financial goals.

Select why you hold a relatively high proportion of cash.

It gives me flexibility

  • Liquid holdings are flexible
  • Cash is a key part of my working capital
  • I may use it to fund private or business ventures
  • What if I need it due to unforeseen circumstances?

We completely understand that you want flexibility. But let us show you how you can stay flexible as well as enhancing your portfolio.

Find out what we believe are the two main reasons why you should make better use of your cash.

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Reason # 1 to better utilize your cash

Too much cash can significantly impact your purchasing power.

Learn how cash holdings might have impacted your purchasing power over the years.

Assume your starting capital in your home currency is 1 Million. Choose your country of domicile, preferred deposit currency and start year to see how the value of your cash may have changed.

Assume your starting capital in your home currency is 1 Million. Choose your country of domicile, preferred deposit currency and start year to see how the value of your cash may have changed.

Your country of domicile
Deposit currency
Start year

Pre-2000 data uses the DEM as a proxy currency for the Euro.

Data only runs through to 31 December, 2016.

See the impact of money market deposits

Money market deposits may be considered short-term investments of up to one year, offering high liquidity (quick availability) and low price volatility, e.g. money market funds.
Notes:

  1. We use daily 1M LIBOR fixings as a proxy for money market return. LIBOR rates are publicly available information.
  2. For the EUR money market rate, the German 1M LIBOR is used.
  3. Actual values for the German 1M LIBOR are available between 1996 and 2014. An approximation is made for 1993-1995 based on correlation with the CHF 1M LIBOR.
Today's real value

The actual loss on your portfolio due to inflation may even be understated by these numbers: official reports in many emerging economies have been known to misquote inflation numbers when inflation is high.

in % in your home currency
Change in real value since the start year
in % in your home currency
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Past performance is not indicative of future results.

Sources: IMF, Bloomberg, ECB, Deutsche Bundesbank, Federal Reserve Economic Data, UBS

Reason # 2 to better utilize your cash

Excessive cash can necessitate greater investment risks.

What is required to turn 1 million today into 1.5 million in 10 years?

Choose your preferred mix of cash and investments to see how hard your investments must work to achieve your goal.

Invest
Keep in cash
Annual yield from your investments
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
19.62%
13.35%
10.32%
8.45%
7.18%
6.23%
5.51%
5.01%
4.55%

You would like to keep 0.1 million in cash and to invest 0.9 million. This means your investment needs to generate an average annual yield of 4.55% over 10 years to produce the required 0.5 million gain.

You would like to keep 0.2 million in cash and to invest 0.8 million. This means your investment needs to generate an average annual yield of 5.01% over 10 years to produce the required 0.5 million gain.

You would like to keep 0.3 million in cash and to invest 0.7 million. This means your investment needs to generate an average annual yield of 5.51% over 10 years to produce the required 0.5 million gain.

You would like to keep 0.4 million in cash and to invest 0.6 million. This means your investment needs to generate an average annual yield of 6.23% over 10 years to produce the required 0.5 million gain.

You would like to keep 0.5 million in cash and to invest 0.5 million. This means your investment needs to generate an average annual yield of 7.18% over 10 years to produce the required 0.5 million gain.

You would like to keep 0.6 million in cash and to invest 0.4 million. This means your investment needs to generate an average annual yield of 8.45% over 10 years to produce the required 0.5 million gain.

You would like to keep 0.7 million in cash and to invest 0.3 million. This means your investment needs to generate an average annual yield of 10.32% over 10 years to produce the required 0.5 million gain.

You would like to keep 0.8 million in cash and to invest 0.2 million. This means your investment needs to generate an average annual yield of 13.35% over 10 years to produce the required 0.5 million gain.

You would like to keep 0.9 million in cash and to invest 0.1 million. This means your investment needs to generate an average annual yield of 19.62% over 10 years to produce the required 0.5 million gain.

The more cash you keep

  • the harder your investments must work
  • the fewer investment options you have
  • the more your wealth is exposed to inflation
  • the less likely it is that you will achieve your financial goals