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Holding cash on purpose is a pretty terrible idea in just about every political environment. Nobody who's rich actually does this, unless is specifically earma
by zeroer 10y ago
Holding cash on purpose is a pretty terrible idea in just about every political environment. Nobody who's rich actually does this, unless is specifically earmarked for an upcoming purchase or an emergency fund. You're better off with stocks and metals.
- cryptarch 10y agoHow is holding large amounts of cash bad? I don't understand, could you elaborate on that?
- varjag 10y agoYou are losing them to inflation.
- forgetsusername 10y agoAt a very slow rate, at very low risk. There are always tradeoffs. I think bad about cash.
- varjag 10y agoThere's enough of compound effect to make your cash worth a lot less by the time you retire. E.g. here in Norway you'd lose 50% value of your savings over 20 year period.
- forgetsusername 10y agoIf you stuff the cash in a mattress and sit around for 20 years. But if you do that, inflation isn't your biggest risk.
- eterm 10y agoCash doesn't grow and is generally devalued through inflation. A diverse portfolio is better protected against inflation, cash ought to make up some of a diverse portfolio but not a large proportion of it. Bonds are a better way of having cash-denominated assets since they still have returns while not being particularly risky (in the general case). Cash is still useful however because it is easy to access quickly without losing value to having to sell quickly and doesn't incur fees.
- VexXtreme 10y agoAnd Bitcoin.