Savings accounts, term deposits and low-risk bonds (aka Cash) typically earn less than the rate of inflation. They have their place in a portfolio, but take on more risk and volatility to stay ahead. #fintips.
Savings accounts, term deposits and low-risk bonds (aka Cash) typically earn less than the rate of inflation. They have their place in a portfolio, but take on more risk and volatility to stay ahead. #fintips.
What is you alternative?
I keep a small amount in cash/cash-likes for immediate living expenses and emergencies. The rest is in other investments; property, stocks, bonds, crypto. The easiest way to rapidly access traditional investments is low-fee passive ETFs.
Only thing with risk is most people lose out and underperform compared to if they would of just held it in a bank. What needs to happen is people need to be able to invest like a bank but that's limited to only the rich.
A good way to perform close to the market is via low-fee passive index funds / ETFs. I teach my nieces and nephews about investing by starting them with a portfolio that's a basket of ETFs.