The Hidden Risk of Playing It Too Safe with Your Money

The Hidden Danger of Playing It Too Safe: Inflation One of the biggest risks investors face is being too conservative with their money. Having solid cash reserves is essential so you can sleep well at night and handle emergencies when things go wrong. However, long-term money must be given the opportunity to grow by investing in assets that provide returns above the rate of inflation, protecting the purchasing power of your money over time. Inflation is one of the greatest long-term risks you can take on, yet unlike the short-term volatility of the share market that makes the nightly news, inflation is a silent erosion. You often do not realize the real downside until ten, twenty, or thirty years down the track, and by then it is too late. To stay ahead, your long-term funds need exposure to businesses that can outgrow inflation, because cash simply will not do that. General Advice Only. Robert Goudie is an Authorised Representative (No. 235974) of Consortium Private Wealth Pty (AFS Licence 495401).

Disclaimer || The information provided in this post is general in nature only and does not constitute personal financial advice. Robert Goudie is an Authorised Representative (No. 235974) of AFSL 495401.