Money under a mattress loses buying power every year to inflation. At 3% inflation, $100 buys $74 of goods in ten years. 'Safe' is not the same as 'no risk of loss' — it is a choice about WHICH risk you take. Holding only cash is a guaranteed small loss instead of an uncertain outcome.
Check yourself
Holding only cash for 20 years means…
Zero risk
Guaranteed loss of buying power to inflation correct
Higher returns than stocks
There is no risk-free option. There is only choosing which risk you understand well enough to live with.
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