Cash Management
Know how much cash to hold, where to hold it, and how to pay yourself to avoid selling investments in a down market.
How We Manage Cash Reserves
Cash management is about more than the rate you earn on a balance. It is the work of holding the right amount of liquid reserves, in the right place, at the right time.
At Gatewood we calculate your expected monthly expenses, subtract your guaranteed income arriving each month, and set a reserve against the difference — a smaller one while you are still working, a larger one once you're retired. Our Investment Committee reviews the number of months we hold at least every quarter. This means we are refilling when the market is strong and spending down when the market is volatile. Done this way, a down market becomes something you can wait out rather than something that forces you to react.
Watch as our Senior Wealth Planner, Nina Breen, explains why it matters.
What Our Service Includes
Cash Target Analysis
Quarterly Cash Hub Review
Family Budget and Spending Plan
Cash Management Strategy
Our Investment Committee invests your family's cash into a few different strategies based on your goals, designed to earn yield on your cash.
The Cash Hub Account Strategy
The biggest question people carry into retirement is whether the money will last. The Cash Hub Account is a dedicated account that holds about two years of the income you draw, so that question has a number attached to it instead of a feeling.
Working out the target takes four steps:
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Start with what your household spends in a month.
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Subtract the income that you know will always arrive.
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Multiply what is left by 24 months.
- Adjust the monthly target based on the Investment Committee's recommendation.
Your monthly income is paid from that account. When markets fall we draw from the Cash Hub rather than selling, and when markets recover we refill it. That is what lets the timing of a sale be a decision rather than a reaction.
Example: Figures below are US averages, not a projection for you.
What Your Fee Covers
We charge one advisory fee for household wealth management, calculated on the assets under our management. The fee schedule works like tax brackets, so the blended fee percentage declines as the portfolio grows. Trading and rebalancing sit inside that fee rather than being charged separately.
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Personal Tax Preparation is billed as a separate engagement through Gatewood Tax and Accounting.
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Any insurance products sold are subject to commissions, per industry standards.
You can read more in-depth about what we charge, how you're billed, and what your fees might be at the link below.
An Integrated Family Plan
A truly comprehensive financial plan involves tax, investments, cash, insurance and your estate — which all require their own expertise.
Your cash target is set by your Client Care Team, built around your goals, reviewed against your insurance coverage, and directed by our Investment Committee. Your plan gets advice guided by experience and all aspects of your plan fit together to support your goals.
That is what we call Firm-to-Family®, and it is how we create plans that endure for generations. Your advisor will one day retire, but your plan will outlast any one relationship.
Frequently Asked Questions
Cash management is deciding how much cash your household should hold, where to hold it, and what to do when the balance is above or below that number.
We believe there are three key parts to managing cash: keeping enough on hand to cover short-term needs without touching long-term investments, holding that money somewhere the value does not drop, and putting anything above the target to work rather than letting it sit unused.
It depends on which stage you are in.
While you are still working and saving (Building Wealth), the target is about six months of your monthly needs.
As you move toward drawing income from the portfolio (Activating Wealth), it rises to roughly two years.
We add up your actual outflows — including, but not limited to, lifestyle, mortgage, health premiums, property tax, insurance, travel, charitable gifts and taxes withheld — and set the target against them.
You can, and for your everyday checking buffer you probably should.
The reserve we manage is a different pool of money. It is invested in money market funds and short-term treasury debt, designed to hold their value, which has historically paid meaningfully more than a typical savings account while staying available. We show you both rates at your annual meeting so the comparison is obvious and actionable.
A small portion is. The cash sweep portion — the next month or two of spending — sits in FDIC-insured bank deposits.
The larger portion is held in money market funds and short-term treasury debt, which are not bank deposits and are not FDIC insured. We only choose money market funds from very high-quality banks where failure is less likely. The short-term treasury debt is backed by the full faith and credit of the United States government.
These securities are chosen to act as a stable value that provides additional yield and be available quickly, but they are investments, and we say so plainly rather than letting "cash" imply something it does not.
A Cash Hub is one account holding roughly two years of the spending your investments have to cover, and it is the account your monthly income is actually paid from. Guaranteed income such as Social Security or a pension can be deposited into it, scheduled withdrawals from your portfolio are added to it, and a single transfer goes out to your checking account each month.
The reason it exists is timing. When markets fall, the income still has to arrive, and a household without a reserve meets that by selling investments at the worst possible moment. With a Cash Hub, the income is paid out of the reserve while markets recover, and we refill it when they do.
Nothing changes about how you get paid. That is the whole point of having these reserves.
Your income continues to come out of the Cash Hub, which already holds about two years of living expenses, so no investment has to be sold to cover a monthly distribution. When markets recover we refill the account and the decision about when to sell stays in our Investment Committee's control, rather than being forced by the market.
Yes, we are held to a fiduciary standard on all of our advisory accounts as well as by our teammate's designations such as CFP® and CFA®.
Gatewood is compensated by an advisory fee calculated as a percentage of the assets we manage and billed quarterly.
Hear What Our Clients Say
“My wife and I moved to St. Louis four years ago and became Gatewood clients in 2024, on a referral from our daughter-in-law. Her father was an established attorney who had said good things about the team, and that recommendation was passed down to us. That introduction set an expectation, and the people there have matched it. We've met a lot of the team by now, and the impression has been consistent with every one of them. Each person we're introduced to is professional, smart, and they work together well as a group — which says something about the people Gatewood hires…” Read more.
“A friend of a friend referred us to the team over 20 years ago, and we've been together ever since. My wife and I have changed jobs and time zones more than once, but they've been a constant through it all. Even when moving to different parts of the country, we always keep our ties to St. Louis wherever possible, and we appreciate the Midwestern values of Gatewood. The relationship we’ve developed over the years has built trust in the team that they are honest and always have our best interests in mind. They’ve helped us with everything from moving our 401(k)s to managing our investments day-to-day…” Read more.
“My husband and I began working with Brian in 2019 and have been very pleased with the level of service we’ve received ever since. Our client care team, Nina and Jake, have taken the time to truly listen to our goals and actively make adjustments to reflect our evolving needs over time. What I appreciate most is the combination of knowledgeable, focused guidance always delivered with genuine care and humility. We've been so impressed with their timeliness and attention that we've introduced them to our parents, siblings and adult children and now they are advising three generations of our family. Their support with tax planning, administrative tasks, and retirement income planning has become even more comprehensive over time, and I always feel that our questions are fully addressed promptly and thoughtfully…” Read more.
“As a client of Gatewood for over 10 years now, I am very pleased with the experience I’ve had with my team. Whenever I have questions or need advice, they are always available with professional and helpful guidance. They really get to know their customers so that they can provide personalized service and are very responsive when I contact them and they do a great job managing my portfolio. I had a turning point in my life, and they were very helpful in analyzing financial impacts and helping to manage through it. I highly recommend their services.” Read more.
“What has stood out most over our decade-long relationship with Gatewood is how genuinely they listen. Our advisor takes the time to understand our full financial picture and has made a point to build a relationship with my wife as well, so she feels comfortable working with the team whether I'm present or not. Having everything coordinated in one place, with great online tools at our disposal, has been invaluable. Our team is responsive whenever we have questions and has always followed through with care and professionalism. Beyond the planning itself, it's the personal relationships we've developed that make this partnership something we're truly grateful for.” Read more.
“Our relationship with Gatewood Wealth Solutions has evolved over the years right along with our family. From building and protecting our wealth to retirement and estate planning, Gatewood has guided us and enabled our objectives. It’s assuring to know skilled professionals we trust are working with us to optimize what we have worked for all our lives.” Read more.
Important Disclosure: The statements provided are testimonials by clients of the financial professional. The clients listed have not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success.
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