A bull market in cash is coming! Today, Gary Zimmerman, founder and CEO of Max, explains how he discovered major inefficiencies in the cash-deposit market and built a platform that helps clients earn higher yields while staying fully FDIC-insured. We explore how broker-dealer incentives shaped the “always be invested” mindset, why RIAs take a more fiduciary approach to cash, and how most advisors dramatically underestimate how much cash clients actually hold in outside bank accounts. We also dive into the strategic role of cash in portfolios, the psychology and behavioral finance behind loss aversion, and why many investors keep cash in low-yield big banks despite far better options. Today we discuss...
- Gary Zimmerman shares his path from aspiring biochemist to investment banker and ultimately founder of Max.
- Gary describes how Max helps advisors and clients earn higher yields on cash while staying fully FDIC-insured.
- The conversation highlights the structural differences between broker-dealers and fiduciary RIAs in how they treat cash.
- Cash is both the “worst” asset class (low returns) and the “best” (strategic flexibility and optionality).
- Gary emphasizes that many advisors are unaware of large “held-away” cash balances clients keep at big banks.
- Research shows high-net-worth households keep roughly 25% of their liquid assets in cash—far above portfolio models.
- Behavioral finance plays a major role as clients publicly want risk but privately hoard cash for emotional comfort.
- Cash helps investors sleep better, reduce loss-aversion anxiety, and feel less trapped in work or life decisions.
- Gary explains that deposit pricing inefficiency exists because large banks don’t need or want more deposits.
- The system also keeps client deposits below insurance limits by spreading funds across multiple banks.
- They explore how most households either have no emergency reserve or keep excessive idle cash earning too little.
- Cash reserve needs vary dramatically by life stage, career stability, and complexity of financial obligations.
- Senior professionals may need years of cash cushion because job searches take longer at higher levels.
- Behavioral mistakes in downturns often stem from being over-invested relative to one’s psychological risk capacity.
- Gary argues that post-pandemic money-supply expansion suggests more inflation is still embedded in the system.
Subscribe & Download
Never miss out on a new episode! Subscribe using your favorite podcast app.
Sign up to be one of our Money Tree Ultimate Insiders. You will have instant access to new episodes, automatically have access to our monthly giveaways, and the potential to be a guest panelist on our show
Looking for a better way to invest? Consider Betterment.
It doesn’t cost much to start, and you get access to a portfolio built around your risk tolerance and your goals. Using Modern Portfolio Theory, pioneered by a Nobel laureate, Betterment can help you build wealth without getting caught up in the noise of the market.
Today's Guest: Gary Zimmerman
Gary Zimmerman is the founder and CEO of the intelligent cash management platform MaxMyInterest, which automatically directs money from one online bank to the next, based on which is paying the highest interest rate. Gary developed the idea for Max during the financial crisis and leads the strategic direction of the firm. Prior to founding Max, Gary was a Managing Director and Global Head of Strategic Solutions for Sovereign Wealth Funds at Citigroup where he was responsible for advising these funds on their direct investment activities globally. In that role, he advised funds with more than $5 trillion of assets under management. Previously, Gary advised companies and private equity firms on mergers and acquisitions at Citigroup, Societe Generale and Merrill Lynch. Gary graduated magna cum laude from Harvard University with a degree in Economics, and subsequently completed an executive education program at the Wharton School of The University of Pennsylvania.
Gary's Online Presence:
Today's Panelists
Kirk Chisholm | Innovative Advisory Group