How can I create a cash milestone?

Fantastic question! After all, cash is king. 

First of all, cash can be an important option, especially for shorter-term goals where investing in securities may not make sense because of potential market movements and the shorter timeframe. All else equal, the higher the cash allocation, the safer the portfolio. Since cash is not invested, it does not experience market fluctuations. 

On Managed Portfolios, there are two ways you can save cash into your milestones:

  1. Save Cash milestones
  2. Milestones with a Stocks, Bonds, and Cash allocations 

The Save Cash milestone

This is one of the many types of milestones we offer. One unique aspect of the Save Cash milestone is that the funds are not invested. Instead, the funds always stay in cash. This can be especially useful for shorter-term goals where saving cash may help you reach your goals more predictably than investing given the shorter time frame since the cash cannot lose value.

This type of milestone can be especially helpful because:

  • The cash will not lose value and can be especially useful for shorter-term goals
  • There’s no limit on how many Save Cash milestones you can create, especially if you want to put cash away for different goals
  • It may help with faster withdrawals since no securities will need to be liquidated

 Check out or create a Save Cash milestone: Create Milestone 

 Milestones with Stocks, Bonds, and Cash allocations

All of our other milestone types (Rainy Day, Retirement, Build Wealth, New Home, New Vehicle, and Custom) can also hold cash.

If you’re creating a new milestone, you can choose to have the milestone be 1) Stocks and Bonds, 2) Stocks, Bonds, and Cash, or 3) All Cash. If you choose Stocks, Bonds, and Cash, you’ll be able to choose and later update the percentage of the cash allocation.

If you have an existing milestone, you can also update this setting at any time:

  • Select the milestone you’d like to update
  • Click on the Edit tab
  • From there you can either edit the Targets (which will include the allocation) or edit the Allocation directly.

In addition to using milestones, you can also put cash in your Wallet. Here’s more information on the Wallet and how it’s used: What is my Wallet and how do I use it?


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