26 I. Options For Stashing Cash States counties and municipalities within the United States often issue short-term notes which may be appropriate for cash management investment including revenue anticipation notes RANs tax anticipation notes TANS and bond anticipation notes BANS. One of their attractions is exemp- tion from federal taxes and possibly one or more state taxes depending primarily on issuer and investor residency. Intergovernmental agencies both domes- tically and internationally may also offer credit-worthy notes and bonds. If you include foreign securities in your cash management accounts make sure that you understand the relevant reporting require- ments if you buy or hold these securities in a foreign account as well as any foreign tax withholdings and the implications to your domestic taxes. Finally financial institutions corporations and even large not-for-profits with strong credit ratings or bond insurance issue repurchase agreements commercial paper and notes and brokered CDs that may be prudent holdings for cash management. There are several ways by which an investor can access these securities. One is to buy them individually typically with a plan to hold them to maturity. Many brokerage firms will set up programs with Treasury bills or with brokered CDs to ladder invest- ments scale-out by maturities and auto- matically roll over funds into new bills or CDs as the old ones mature. The advantage of owning individual secu- rities is that the holder does not encounter the risks associated with various pools or funds or the financial soundness of their managers and servicers. You own the bill or the note. It is in your account. It remains there until it matures or you sell it. Your risk is limited to the credit quality of your holding alone not to the other hold- ings in a pool. Your risk includes any vari- ation in price that can result if the holding has a longer maturity and interest rates rise or if it is denominated in another currency that falls in value against your local curren- cy. You will also need to monitor the issuer and other events that may impact the credit quality of your holding. For example what will happen if you buy a note issued by a municipality with a very high credit rating and there is a sudden significant loss in the municipality accounts it does happen that triggers a rating downgrade You will not know unless you are paying attention and have the time to determine whether you should hold or sell your note. In other words holding individual bills notes and bonds means that you will need to manage the logistics of buying and monitoring individual holdings or you can arrange for a broker or investment advisor to help you do so. To avoid the logistics of buying and moni- toring individual securities many individual investors look for professional management of their securities-related cash management options by investing in money market accounts mutual funds or ETFs or hiring active investment advisors.