Gary Zimmerman of Max^® explains how to utilize your cash asset in retirement.

Cash is one of the most overlooked assets in retirement. Here’s how retirees can earn thousands more in interest while keeping their money safe and FDIC-insured.

Many retirees spend years carefully managing their investments — stocks, bonds, and retirement accounts get plenty of attention. But there’s one asset class that often gets ignored: cash.

In this episode of Retire Today, I’m joined by Gary Zimmerman, founder and CEO of Max^® to talk about why so many Americans are earning next to nothing on their bank money — and how that quiet mistake can cost retirees tens of thousands of dollars over time.

As Gary explains early in the conversation, “People think that the bigger the bank, the safer it is. And that’s patently not true.” In fact, many of the banks that failed during past financial crises were among the largest institutions.

Why Cash Matters More in Retirement

Cash plays a unique role in retirement. It provides liquidity, stability, and peace of mind — especially when markets are volatile. But that doesn’t mean cash has to sit idle.

Gary shared that after years as an advisor, he started getting a flood of calls from clients during the COVID period. Their CDs were maturing, and rates were dropping instead of rising. “They were missing out on thousands of dollars in interest,” he said.

At the same time, trillions of dollars across the U.S. were sitting in bank accounts earning close to zero — while other savers were earning closer to 4% in the same type of FDIC-insured accounts.

That gap is not about risk. It’s about awareness and access.

FDIC Insurance: Safety Without Sacrificing Yield

One of the most important parts of the conversation focused on FDIC insurance.

Many people believe that as long as their money is at a big-name bank, it’s automatically safe. But FDIC insurance has limits — typically $250,000 per depositor, per bank, per ownership category.

As I shared in the episode, I regularly see “everyday millionaires” with far more than $250,000 sitting in bank-type accounts — without full insurance coverage.

Gary explained how spreading cash across multiple institutions increases FDIC protection and improves interest rates at the same time. “The more diversified you are, the more guarantees you get from the FDIC,” he said.

Why Banks Pay So Little (And Why They Can)

A question many retirees ask is simple:
If higher rates exist, why don’t banks automatically pay them?

Gary’s answer was refreshingly blunt. Banks don’t raise rates unless they need your money. When a bank pays 0.1% or 0.2%, it’s often a signal: “They’re telling you they don’t want your money.”

Online banks, smaller institutions, and rate marketplaces compete aggressively for deposits — and that competition benefits savers who are willing to look beyond their local branch.

As Gary put it, “There’s an actual market for your money. Just like selling a house, you have to put your money on the market to get the best price.”

DIY vs. Using a Service

Could retirees do all of this on their own? Yes.
But should they?

Gary compared the process to constantly switching phone plans or insurance providers. It works — but it requires attention, time, and discipline. Rates change, banks create teaser accounts, and some institutions quietly lower yields after a few months.

Max^® was designed to automate that process. As Gary described it, the goal is to “spend five or ten minutes thinking about cash, then never think about it again.”

For many clients, that convenience translates into meaningful results. Gary shared that a retiree with $250,000 in cash could earn roughly $10,000 more per year, or $100,000 over a decade, simply by managing cash more effectively.

The Behavioral Finance Problem Nobody Talks About

One of my favorite parts of the conversation focused on behavioral finance.

People say they like their bank because it feels familiar. But when asked how they actually interact with it, the answer is usually: “I use the app.”

At that point, loyalty becomes expensive.

As Gary summed it up, “The bank owes you nothing. You owe the bank nothing.” Your savings should work as hard as you did to earn it.

The Bottom Line

Cash isn’t boring — it’s powerful when used correctly.
For retirees, optimizing cash can mean more flexibility, less risk, and thousands of dollars in additional income over time — without chasing returns or increasing exposure.

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About the Author:

Jeremy Keil, CFP^®, CFA^® is a financial advisor in Milwaukee, WI, author of the bestseller Retire Today: Create Your Retirement Master Plan in 5 Simple Steps and host of both the Retire Today Podcast and Mr. Retirement YouTube channel

Additional Links:

Buy Jeremy’s book – Retire Today: Create Your Retirement Master Plan in 5 Simple Steps
Gary Zimmerman on LinkedIn
Max^®: Your Best Interest
Create Your Retirement Master Plan in 5 Simple Steps

Connect With Jeremy Keil:

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