AI-assisted summary
Moving savings to cash can lead to a guaranteed loss of purchasing power over time due to inflation and taxes.
Fixed-income investments like bonds are not entirely safe and may only help your savings keep pace with inflation and taxes.
Historically, diversified stock investments rarely lose money over long periods, such as 10 years or more.
Q: and the stock markets. What can I do?
A: You may not understand your real choices and their consequences for your life savings. . It is truly hard to understand why reducing risk is difficult without a review of some investment facts and history.
Why don’t we go to cash, you ask? This is fine for short periods of time, with the only “risk” being missing out on the periodic sudden upward moves in the stock market. If you mi