Summary of “YOUR CASH IS NOT SAFE...” by The Diary Of A CEO

Why Cash Can Lose Value

• Holding cash may feel safe, but inflation reduces what it can buy over time.
• If inflation is around 3.5–4% a year, cash earning no interest loses roughly that much purchasing power annually.
• Putting money in a bank or money market fund can earn interest, potentially near the inflation rate.
• However, interest earnings are taxable—even when they only keep pace with inflation.
• As a result, after taxes and inflation, cash-like savings can deliver a poor long-term return.