Should You Bank With Your Brokerage? | Smart Change: Personal Finance | – Billings Gazette

Can a cash management account make it easier to invest?

When it comes to investing, timing can be critical. For example, missing a day or two of having your cash in the market — say, the amount of time it takes to transfer cash from an outside account into your investing account — could mean losing out on market gains. By having all of your accounts in one place, you can take advantage of vital time in the market to potentially earn more money on your cash.

“First and foremost, you are likely setting up a one-stop-shop for yourself so you can bank, save and invest all in one,” said Leah Bourne, by email. Bourne, the managing editor of the investing education website The Money Manual, also added, “Many of the companies that offer these accounts have made the ability to transfer money between accounts really, really easy. If you are actively investing, this is a big pro.”

One of the other big practical perks when it comes to keeping a CMA with your brokerage? You have less to keep track of by keeping your cash accounts and your investment accounts at the same place.

“That means you’ll have one app on your phone instead of a few and will be seamlessly able to monitor your cash account and your brokerage account all in one spot,” Bourne says.

Such as with any financial product, consumers should do their research to determine whether a CMA makes sense for their lifestyle and if the perks work for their spending, saving and investing habits.


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