Should I keep money in a high yield savings account until it is to be invested?

I have a financial planner who charges .70 percent for fees. I keep a cash balance on hand for investments pending his guidance. Sometimes large amounts sit there for months while we work on a strategy. Should I move this cash out to a high yield savings account until it is to be invested? Or does this passive cash part of an actively managed portfolio help motivate my planner?

Investing, Asset Allocation, Choosing an Advisor
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May 2018

I see no reason not to hold these funds in an FDIC-insured, on-line bank until you're ready to invest.  With rates slowly rising, you can earn close to 2% on the funds, with no advisor fees!  While you won't earn a lot, every dollar helps!

Thanks for your question and best of luck to you.

 

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