Wealthy individuals understand the importance of keeping their wealth invested due to the decline in the U.S. dollar’s value. Young investors are turning away from the stock market due to its volatility, with 93% of rich young Americans planning to allocate more of their portfolio to alternatives.

Berkshire Hathaway co-founder Warren Buffett holds most of his liquid assets in short-term Treasury Bills and cash-like instruments, with a reported cash pile of nearly $190 billion. Investing like Buffett involves balancing liquidity and locked-in investments to navigate market uncertainties and build wealth.

High Net Worth Individuals (HNWIs) keep an average of 15% of their wealth in cash and cash-like instruments to ride out market crashes. CDs and high-yield accounts offer secure options for investors looking to maintain liquidity while earning interest, providing access to funds and insuring balances up to $8 million.

Acorns offers a unique investment opportunity by rounding up everyday purchases to the nearest dollar and investing the difference into a diversified portfolio of ETFs. This easy and automated process allows investors to grow their wealth with spare change, making investing accessible and effortless for all.

During economic downturns, smart investors diversify their portfolios and keep excess wealth in safe investments like CDs, high-yield savings accounts, and money market funds. Having capital set aside in secure investments ensures financial stability during turbulent times and helps weather market storms effectively.

Read more at Yahoo Finance: How much wealth do rich Americans keep in cash? A few ways to boost your own cash reserves for the future