Do you remember that famous commercial back in the 1970s with three brothers and a big box of Life cereal? Neither of the two older brothers wanted to be the first to try it, so they pushed the bowl to their youngest brother, Mikey. Mikey tried it and liked it and the two other brothers shouted out in unison that “Mikey likes it!” They then were happy to gobble up their own bowls of Life cereal.

I feel the same scenario can apply to the Bank Deposit Investment Account (BDIA).

The BDIA is new and everyone seems hesitant to try it. The “Mikeys” out there who have done so were happy to find it’s safe, liquid, and provides a higher yield while still meeting all federal, state, and local legal requirements.

A BDIA is a bank custody account that primarily holds treasury and government securities with a complement of high-quality corporate paper where permitted.

The BDIA has two critical components that cannot be overlooked. First, a liquidity analysis that analyzes one’s cash flow and determines the time value of all cash that is overlapped with a worth assessment of funds in the national marketplace.

Second, the services of a Registered Investment Advisor (RIA) who also serves as a fiduciary in managing such cash.

Combine the liquidity analysis with the power of a strong RIA and you have a service that will take low-performing and non-performing cash and turn it into an income-generating asset.

Wayne County in Upstate New York did the “Mikey” thing. They were one of the first to try a BDIA and guess what? They love it! While their cash is safe and liquid in the bank, the county government has generated hundreds of thousands of new dollars of income to their bottom line. For added confidence, their U.S. Treasury portfolio is being managed by Manning & Napier, a world-class RIA.

At three+one we create the liquidity data that sets the stage for low-performing and non-performing cash to become an asset that produces income immediately. We are not a bank, an RIA, or a Financial Advisor (FA) but rather an independent provider of liquidity data that matches the time value of all operating and non-operating cash to its value in the marketplace.

Public and Higher Ed officials frequently ask me if anyone else has tried a BDIA. To that I say, “Yes, and they love it.”

Maybe it’s time you tried the BDIA approach. It’s our bet you’ll love it. Hey, Mikey did!

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We Hope to See You at our Upcoming Presentation:

GFOA of SC – October 16 – 19
North Country NY GFOA – October 20th
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