The Dispatch

Investing Q&A Series

Q: How do I convince clients that leaving long-term investment funds in cash is risky?

A: Emphasize that cash, while seemingly “safe,” loses purchasing power over time due to inflation, particularly detrimental in long-term portfolios. Recommend fixed income and model portfolios, such that incorporate diversified assets to help counteract inflation and maintain real value. Explain that by investing in a well-allocated portfolio, clients are better positioned to achieve growth over time rather than eroding wealth through cash’s stagnation.

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