Now that the Federal Reserve has started to cut the federal funds rate, those yields are moving lower. Lincoln Financial's analysis shows that cash yields have historically fallen by 2%, on average, twelve months after the start of a Fed cutting cycle. What to do with excess cash Instruments like CDs, high-yield savings accounts and money market funds are a good place to stash cash for emergencies and upcoming expenses. However, the forward market implies that they should start to look appealing relative to money funds in about six months, Abate wrote. "We expect investors to rotate from money funds into IG only if compensated for the risk," he noted.

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Persons: Joe Boyle, Sallie Mae, Goldman Sachs, Marcus, Michael Kaye, Jayson Bronchetti, Lincoln, Boyle, Lincoln Financial's Bronchetti, Bronchetti, we've, Joseph Abate, Abate Organizations: Hartford Funds, Investors, Federal Reserve, American, Financial, Synchrony, Fed, Lincoln Financial, Bloomberg U.S, Barclays, Reserve, IG Locations: Wells Fargo, U.S