At Hill Investment Group, when a few clients ask the same question, we know others are likely wondering, too. That’s why we created “Hey Hill”—a recurring newsletter feature where we answer common client questions and share our take. Have a question? Email us at service@hillinvestmentgroup.com.

We get this question all the time. While it sounds simple, the answer is personal. That said, we can use evidence and clear thinking to guide a smart approach.

It’s tempting to hold extra cash “just in case.” It feels safe. But over time, too much cash is actually a silent killer. It quietly erodes your purchasing power and your progress. Inflation eats away at its value, and the opportunity cost adds up.

Just like any of your assets, both allocation and location are essential considerations.

Here’s how we think about managing your cash strategically:

Start with the essentials.
Keep 3 to 6 months of living expenses in a high-yield savings account. 12 months if you’re particularly anxious. Think of this as your cushion for the unexpected.

Currently, we recommend our high-yield, easy-to-use cash management tool like this one. With it, we’re helping clients earn around 4% (as of publication) on cash, with no additional cost. This method also comes with enhanced FDIC protection and next-day access when needed—it’s perfect for things like tax payments or big upcoming expenses. It’s an ideal spot for cash you might need soon but still want working for you.

Don’t let cash pile up where it’s not working.
Checking accounts are for paying bills—not stockpiling. Once the essentials are covered, move excess cash into higher-yield options like the above or reallocate it toward long-term growth. Every dollar should be pulling its weight.

Cash in your portfolio? That’s a drag.
Cash is a return-killer in investment portfolios. We keep it low by design. Holding unnecessary cash means giving up potential growth. It’s one of the small but meaningful ways we “pick up pennies” for our clients without increasing risk.

The goal isn’t zero cash—it’s the right amount in the right place.

We’ll help you strike that balance so you’re confident, covered, and focused on taking the long view.

Let’s take a look at your setup—just say the word. 

At Hill Investment Group, we’ve found that when a few clients ask similar questions, many more likely share the same curiosity. To better serve you, we’ll periodically feature this “Hey Hill” segment in our newsletter, addressing common client questions and explaining our perspective. To submit questions for future newsletters, email us at service@hillinvestmentgroup.com.

Tax season always feels like a scramble. Are there things we (or you) can be doing throughout the year to make it easier – and smarter?

At Hill Investment Group, we believe taxes aren’t just a once-a-year concern. They’re a year-round opportunity. While most people only think about taxes in the spring, we’re building strategies into your plan every day—so you’re not just reacting in April, you’re planning ahead with purpose.

Markets move. Headlines shift. But one thing we can control is how efficiently your portfolio is managed from a tax perspective. It’s a key part of Taking the Long View, helping you keep more of what you earn—not just this year, but every year.

How We Build Tax Efficiency into Your Plan

• Strategic Asset Location – Some investments generate more taxes than others, and where you hold them matters. We structure your portfolio to keep tax-inefficient assets in tax-advantaged accounts, reducing unnecessary tax drag.
• Tax-Loss Harvesting – When the opportunity arises, we strategically offset gains with losses—lowering your taxable income without disrupting your investment strategy.
• ETF Investing – ETFs (Exchange-Traded Funds) allow investors to defer most, if not all, capital gains taxes until they sell, helping avoid surprise tax bills.
• Tax-Advantaged Accounts – From IRAs and Roth conversions to HSAs, we help you maximize the long-term tax benefits of these accounts.
• Charitable Giving Strategies – Tools like donor-advised funds, qualified charitable distributions (QCDs), and appreciated stock donations allow you to give while staying tax-smart.
• Estate & Gifting Strategies – Thoughtful wealth transfer planning helps minimize estate taxes and ensures your legacy is passed on efficiently.

Making Tax Season Easier

Beyond these long-term strategies, we make tax season seamless by preparing tax packets with key reports and details your CPA needs. Because we work closely with your tax team, we help ensure that your investment and tax strategies are always aligned.

If you have questions about how tax planning fits into your financial picture, we’re here to help.

Taking the Long View means thinking ahead—about taxes and beyond.

As you may recall from last month, we asked for nominations for the Rick Hill Award — our way of recognizing someone on our team who truly embodies service, integrity, and leadership. This award is named after our co-founder, Rick Hill, whose influence continues to shape our culture.

We’re excited to share that Nick Ashby is this year’s winner! Nick’s dedication to our clients and team, willingness to step up whenever needed, and steady, thoughtful approach to challenges make him a standout. He makes our firm better every day, and we’re lucky to have him.

We also want to give a big shoutout to Nell Schiffer and Katie Ackerman, who earned honorable mentions this year. Nell’s leadership and commitment to client service are second to none, and Katie’s attention to detail and operational excellence keep us all moving forward. They both make a huge impact, and we’re grateful for them.

Please join us in congratulating Nick, Nell, and Katie! Their contributions remind us why we take the long view.