Bonus season as a cash-planning opportunity

February 17, 2026

Estimated reading time: 3 minutes

Bonus season creates a moment most advisors recognize but don’t always fully leverage. When a large, irregular payment hits a client’s account, it is rarely treated like regular income. Bonus money is viewed differently, which shapes how clients behave.

Instead of being deployed intentionally, bonus dollars are often parked, sidelined, or gradually absorbed into spending. This isn’t a sign of a client’s carelessness, but rather of their caution. When the amount is meaningful, hesitation is a natural response.

That hesitation is a planning opportunity. When advisors step in early to help clients understand how bonus dollars connect to the broader financial plan, they reinforce their role beyond investments alone. Bonus season shifts from being a transactional moment and becomes something more valuable: an opportunity to guide the initial decision that makes subsequent planning steps much easier.

In many cases, bonus dollars default into a client’s checking account because it feels like the safest option. From there, the money earns little, if anything, while clients think through what to do next. The funds remain accessible, but idle, allowing a potential opportunity to stagnate.

Research on lump-sum payments suggests this behavior is common. Most people generally do not deploy windfalls immediately.¹ Instead, they pause and evaluate their options, which can be affected by timing concerns, market conditions, or other considerations such as decision fatigue.

While waiting is a natural response to uncertainty, where and how bonus money is held can influence what happens next. Cash that sits in a traditional checking or savings account tends to stay there longer than intended, often slipping out of focus while earning little return. By contrast, placing bonus dollars in a dedicated, purpose-built account like Flourish Cash^† helps keep the money visible,^∆ earning a higher interest rate,^§ secure with elevated FDIC coverage,^Ω and ready for the next step in the plan.

During periods of market uncertainty, loss aversion and flexibility often take precedence over immediate deployment. As we have previously explored, clients’ emotional perspective often shapes cash decisions as much as rational analysis does. When outcomes feel unclear, a client’s preference for liquid assets can intensify.² Knowing cash is accessible helps clients feel steady while evaluating their next move.

However, waiting shouldn’t mean a lack of intention. Giving money a defined purpose makes it easier to act intentionally when the time is right.³ Flourish Cash allows clients to organize funds into buckets, earmarking them for a specific purpose.

Decision-making improves when people do not feel rushed.⁴ This approach keeps dry powder productive — earning up to 8x the national savings average^# — without the pressure of an immediate decision. It preserves flexibility, allowing advisors and clients to align deployment with portfolio strategy at a pace that fits their needs.

Additionally, behavioral research consistently suggests that strategic financial behavior is most effective when it’s automatic.⁵ Instead of relying on a client’s discipline to manually move funds, encouraging the direct deposit of income into Flourish Cash ensures that their money is immediately put to work. This saves time and keeps cash easily accessible with same-day transfers^| as they evaluate next steps. 

Once bonus dollars are positioned, advisors can help clients move from cash to action. This progression is common: Flourish Cash has sent more than $850 million to RIA portfolios on a net basis,^|| demonstrating that cash is often an effective starting point rather than a final destination.

Defining the next step — whether it’s earmarking bonus dollars for tax payments, planned purchases, or investments — replaces hesitation with confidence and increases the likelihood of successful execution.

Bonus season is a predictable moment, which makes proactive outreach especially effective. When advisors raise the conversation before clients ask, it signals attentiveness and reinforces trust.

Discussing cash alongside investments also expands the advisor’s role. Cash decisions are often the first step in a broader planning process, and addressing them proactively positions the advisor as a guide for the entire financial picture, not just portfolio construction. 

Over time, these conversations reinforce a full-service, planning-led relationship. Clients are more likely to stay engaged, take action, and view their advisor as a long-term partner when cash management is treated as an intentional part of the plan rather than an afterthought.

Before bonus money is invested, there is planning to do. Placing bonus dollars in Flourish Cash keeps them accessible and earning while advisors and clients work through next steps together. It’s a simple decision that improves follow-through and keeps bonus season focused on progress toward long-term goals, rather than hesitation driven by near-term uncertainty.

About Flourish

Flourish builds technology that empowers financial advisors, improves financial lives and retirement outcomes, and delivers new and innovative investment options to advisors. Today, the Flourish platform is used by more than 1,100 wealth management firms representing more than $2.6 trillion in assets under management. Flourish is wholly-owned by MassMutual. For more information, visit www.flourish.com.