15-25% of liquid net worth sitting in HYSAs / checking
$50k - $150k+
4% APY taxed at 37%+ ordinary-income bracket = net negative yield after taxes and inflation.
Tax drag on $100k at 4% APY
1-3% held in physical cash.
97%+ remains fully invested
Liquidity is managed via automated sweeps and portfolio lines of credit (Lombard loans).
Emerging Affluent
$200k - $2M liquid net worth
Family Office
$30M+ liquid net worth
Retail banks profit off net interest margin on your uninvested cash while giving you taxable yield.
Replace "checking + savings" with an automated Operating Account + Direct Indexing.