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>Even keeping it all in cash in a checking account has risk. Besides the obvious FDIC 250k limit, can you clarify this? I don't see how leaving the money alon
by ActorNightly 4y ago
>Even keeping it all in cash in a checking account has risk.
Besides the obvious FDIC 250k limit, can you clarify this? I don't see how leaving
the money alone would have any risk.
- VikingIV 4y agoInflation outpacing your account's interest rate is a risk factor which FDIC doesn't insure against. While your balance won't decrease, its buying power relative to the current dollar will weaken. E.g. an $800k purchase in 2003 would now cost $1.3m.
- ActorNightly 4y agoInflation % vs interest % doesn't directly matter. If Im spending under a certain amount of the interest income, and reinvest the rest, its always going to be inflation beating.