Retail investor: I keep most of my money in a high yield savings. 4% & it's totally safe.


Me: Safe from what?
Retail investor: From the market crashing. I sleep fine.
Me: Inflation runs 3%+. So your "4% safe" is really about 1% after it eats your buying power... while the market did 10%+ without you.
Retail investor: But at least I can't lose it.
Me: You're losing it slowly. Just quiet enough that you don't feel it. That's the most dangerous kind of loss.
Retail investor: ...I never looked at it that way.
Me: Keep your emergency fund in cash, sure. The rest? Buy great companies & sell portfolio secured puts. Make that money actually work.
Don't confuse "safe" with "going nowhere"...
A savings account is a slow leak you can't feel.
Keep the emergency fund, put the rest to work.
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