Talking Stocks 2.0

[MrGoat]

Originally Posted by hartsy

You are really hurting yourself having 90% of your money in cash or cash equivalents. I would strongly encourage you to start looking at some kind of strategy or plan to start shifting your assets to investments.. You are slowly losing money every year you stay all cash to inflation.

Thanks for the reply. My thing is if all goes to hell that money that was supposed to make me money could be nothing. Many I know lost everything in the recession and listened to their advisors and liquidated at major losses to try to preserve what capital they had left. Which was significantly less than adjusting for inflation.

At least the money I have I know exactly what I have and what it’s worth at any particular day. It’s not the same with a money market account in my understanding. He said something along the lines of “if it loses a dollar then it gets dropped”. I don’t know what he meant by that unless that’s something he has told his FA to do. Seems like a pain in the ass for everyone if that’s the actual case.

Is it really so bad to just make money and sock it away in various ways without investing into the stock market? I’m not looking at my investments to get “rich” unless it’s something connected to a hard asset. I am looking to preserve what I have made that should be more than enough to supplement our other income sources in retirement to ensure us or our family never has to need for anything long after we are gone.

I understand I may be leaving money on the table but the security of knowing I have this amount far exceeds the thought of I could have x more of this or x less of this if I put it into an uninsured account.

How does being in a money market account mitigate my fears and protect me and my family from losing everything?

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