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Not really? Inflation in europe is ~2.2%, which is about what HYSAs in europe offer. The value erosion isn't significant in the short term, especially if peopl

by itake 10mo ago

Not really? Inflation in europe is ~2.2%, which is about what HYSAs in europe offer. The value erosion isn't significant in the short term, especially if people spend most of what they earn. In your 20s and 30s, the time horizon for the cash is about 10-15 years (saving up to buy a house). In your 30s and 40s, maybe good time to have equity investments, but perhaps that extra cash just goes into the mortgage or college savings funds.

Kirby64 10mo ago
If your money stays worth exactly the same in net present dollars, it’s effectively eroding in value compared to what you could be earning. 10-15 years is quite the long time horizon. You could easily be earning 7% real/10% actual in equity investing. Most recommendations I’ve seen discuss short term savings such as HYSAs for a house being more in the 5 year or sooner timeframe. Frankly, investing in equities in your 20s and 30s is easily the best time to do it. You let the compounding of growth happen over the decades, not so much later in life.
- itake 10mo ago
  I get it... but im just explaining why people are doing what they do: choosing to hold cash over higher risk investments. Lack of education IMHO is a huge part. Crypto has way more education around how to invest than equities investment. If people are investing, many are choosing crypto. > Frankly, investing in equities in your 20s and 30s is easily the best time to do it. You let the compounding of growth happen over the decades, not so much later in life. I agree, but for many people in their 20s and 30s, there just isn't much cash left over to invest, especially in Europe with high taxes and mandatory social security funds and pensions.
  - Kirby64 10mo ago
    > Lack of education IMHO is a huge part. Crypto has way more education around how to invest than equities investment. If people are investing, many are choosing crypto. More education around investing in crypto? I think we must be exposed to some very different parts of the internet. Investing in boring index funds are very widely spread around these days. Might not be exciting, and I guess there isn’t really something to sell (unlike crypto), so perhaps that’s part of the reason.
    - itake 10mo ago
      probably bias sources but: - https://finance.yahoo.com/news/almost-20-gen-z-investors-164205093.html?guccounter=1 https://finance.yahoo.com/news/almost-20-gen-z-investors-164... - https://www.gemini.com/blog/gemini-survey-finds-more-than-half-of-gen-z-owns-crypto https://www.gemini.com/blog/gemini-survey-finds-more-than-ha... At the end of the day, investing in an ETF for 10 years isn't going to move the needle much. but catching the right crypto wave will have a larger impact on their life.
      - Kirby64 10mo ago
        > At the end of the day, investing in an ETF for 10 years isn't going to move the needle much. but catching the right crypto wave will have a larger impact on their life. Buying the right lotto tickets will have a larger impact too, but that’s called gambling, not investing. As someone who has just invested in ETFs, 10 years has been plenty to more than double my investment. It moves the needle substantially.
        itake 10mo ago
        Tech (and finance) workers have always had a surplus of wages enabling a comfortable life and plenty left over for investment. Personally, my 'worst' year investing my wages is when I only saved 50%. Currently, I save 70% of my after-tax income. As a result, "double your money" is a very meaningful number. If your income is closer to average (and stagnating inflation), there isn't much money to double.
        Kirby64 10mo ago
        > If your income is closer to average (and stagnating inflation), there isn't much money to double. When you’re in your 20s though, there doesn’t need to be a lot. You’ve got the magic of compound interest to work for you. I’m sure you’ve heard the statistic, but $100/mo invested over 40 years is worth a million dollars. $100/mo isn’t particularly a lot.
      - clickety_clack 10mo ago

by itake 10mo ago

Kirby64 10mo ago

If your money stays worth exactly the same in net present dollars, it’s effectively eroding in value compared to what you could be earning. 10-15 years is quite the long time horizon. You could easily be earning 7% real/10% actual in equity investing. Most recommendations I’ve seen discuss short term savings such as HYSAs for a house being more in the 5 year or sooner timeframe. Frankly, investing in equities in your 20s and 30s is easily the best time to do it. You let the compounding of growth happen over the decades, not so much later in life.

itake 10mo ago
I get it... but im just explaining why people are doing what they do: choosing to hold cash over higher risk investments. Lack of education IMHO is a huge part. Crypto has way more education around how to invest than equities investment. If people are investing, many are choosing crypto. > Frankly, investing in equities in your 20s and 30s is easily the best time to do it. You let the compounding of growth happen over the decades, not so much later in life. I agree, but for many people in their 20s and 30s, there just isn't much cash left over to invest, especially in Europe with high taxes and mandatory social security funds and pensions.
- Kirby64 10mo ago
  > Lack of education IMHO is a huge part. Crypto has way more education around how to invest than equities investment. If people are investing, many are choosing crypto. More education around investing in crypto? I think we must be exposed to some very different parts of the internet. Investing in boring index funds are very widely spread around these days. Might not be exciting, and I guess there isn’t really something to sell (unlike crypto), so perhaps that’s part of the reason.
  - itake 10mo ago
    probably bias sources but: - https://finance.yahoo.com/news/almost-20-gen-z-investors-164205093.html?guccounter=1 https://finance.yahoo.com/news/almost-20-gen-z-investors-164... - https://www.gemini.com/blog/gemini-survey-finds-more-than-half-of-gen-z-owns-crypto https://www.gemini.com/blog/gemini-survey-finds-more-than-ha... At the end of the day, investing in an ETF for 10 years isn't going to move the needle much. but catching the right crypto wave will have a larger impact on their life.
    - Kirby64 10mo ago
      > At the end of the day, investing in an ETF for 10 years isn't going to move the needle much. but catching the right crypto wave will have a larger impact on their life. Buying the right lotto tickets will have a larger impact too, but that’s called gambling, not investing. As someone who has just invested in ETFs, 10 years has been plenty to more than double my investment. It moves the needle substantially.
      - itake 10mo ago
        Tech (and finance) workers have always had a surplus of wages enabling a comfortable life and plenty left over for investment. Personally, my 'worst' year investing my wages is when I only saved 50%. Currently, I save 70% of my after-tax income. As a result, "double your money" is a very meaningful number. If your income is closer to average (and stagnating inflation), there isn't much money to double.
        Kirby64 10mo ago
        > If your income is closer to average (and stagnating inflation), there isn't much money to double. When you’re in your 20s though, there doesn’t need to be a lot. You’ve got the magic of compound interest to work for you. I’m sure you’ve heard the statistic, but $100/mo invested over 40 years is worth a million dollars. $100/mo isn’t particularly a lot.
    - clickety_clack 10mo ago