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Here’s why it’s risky to hide cash at home

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1 year ago

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While having some cash on hand can be helpful in an emergency, it’s important to consider where you keep it. Some people stash it in inconspicuous places around the house, a habit that experts say can lead to trouble down the line.

The typical person has roughly $544 in cash and valuables like coins, banknotes, and bullion at home, according to a new survey from financial management app Piere. The site surveyed 1,500 U.S. adults in late January and early February.

Asked where they keep their cash at home, about 10% of respondents store it in a safe, making it the most popular place.

Other spots are less conventional. About 6% hide their cash in a secret compartment such as “a drawer that has a fake side that you can’t see,” said Yuval Shuminer, Piere’s founder and CEO.

Another 6% of respondents said they keep the money either under or in a bed, mattress or pillow, while 5% keep the cash in a freezer or refrigerator. Smaller shares of those surveyed said they keep money in an ornament, vase, or urn (4%), or under floorboards or a carpet (3%). 

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Times of economic uncertainty can lead people to hold more cash, said Shannon Martin, a licensed insurance agent and content writer for Bankrate.

But don’t overdo it, experts say.

Storing cash at home doesn’t give you the same protections as you get with an account at an insured financial institution. You also risk losing out on potential gains from high-yield interest or stock market returns, said Piere’s Shuminer. 

Risks with hiding cash around the house

Having too much cash around the house can expose you to a number of issues. For one: Your home insurance policy might not protect the entire amount.

Items like cash tend to fall under a subcategory called special limits, said Bankrate’s Martin. This means that the covered value is capped at a certain amount, which can depend on your insurer, she said. 

Most home insurance policies will have a $200 coverage sublimit to replace cash, coins and precious metals, Bankrate found.

Some insurers offer higher limits. You could also ask your insurance agent about an endorsement to increase the coverage, but then you would have to prove that you have a high amount of money in your house, Martin said. 

“If you’re trying to put in the claim for $10,000 of cash that you have stuffed in your mattress, there’s probably a lot of questions around that,” she said.

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Money deposited in an account that is protected by the Federal Deposit Insurance Corporation will be safer.

“If you keep it in a bank, the bank has insurance,” Martin said. “If something happens to your cash at home, you only have whatever’s listed on your policy.”

This can make money that’s lost or stolen difficult to replace, even in the face of natural disasters.  

If your home is impacted by a hazard like a fire and you have large sums of cash scattered in your house, “you’ve got this cash that’s now gone up in smoke, potentially,” said certified financial planner Lee Baker, the founder, owner and president of Claris Financial Advisors in Atlanta. He’s also a member of CNBC’s Advisor Council.

Where to keep your cash instead

Don’t shy away from having some cash at home.

“I’ve been in a hurricane where power was out for a very long time and the ATMs don’t work,” said Carolyn McClanahan, a CFP and the founder of Life Planning Partners in Jacksonville, Florida.

At that point, “cash is king,” said McClanahan, who’s also a CNBC FA Council member.

Baker agreed: “Having enough cash to get you through a day, perhaps two, actually makes sense.”

Instead of hiding your savings in drawers, bookcases and secret compartments, here are three other places to keep your money:

1. A high-yield savings account

Experts say that you want to have enough money in your checking account to pay for a month’s worth of bills. Keep anything more than that in a savings account, and ideally, a high-yield savings account.

As of March, some of the top high-yield savings accounts offer an average 4.20% APY versus a 0.6% APY, according to Bankrate.

“It’s just money that they’re leaving on the table,” Shuminer said.

2. Investment accounts

Money for mid- and long-term goals is generally better invested because inflation erodes the value of your savings. While the market can be volatile in the short term, over a long timeline, investment returns will generally outpace inflation, McClanahan said.

“Cash does not outpace inflation,” McClanahan said.

While the market’s recent volatility can be intimidating, experts generally recommend investors focus on their long-term goals.

“You might be leaving thousands of dollars that you could be earning over the course of the next year just by not having it sitting in the right places,” Shuminer said.

3. A ‘personal financial bag’

For emergencies, have enough money to tide you over for a day or two in a “personal financial bag” at home that you can simply grab in the case of fire or other emergencies, Baker said.

Consider keeping that bag in a water- and fireproof safe, said Bankrate’s Martin. If something happens, you may still be able to go in and get the money, she said.

Whether you have a safe or opt for another location, keep the money in one spot in your house and make sure everybody in your family or household knows where it is, Baker said.

“I would not encourage emergency money being in too many different places,” Baker said. “In the time of an emergency, things need to be simple.”

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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