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barrycarter t1_iy86ti9 wrote

Different people have different tolerances for risk. If you don't feel comfortable investing in instruments that can lose money, stick to bank accounts (but remember the FDIC limit on protection), Treasury instruments, or other money insured by the government, and hope our government doesn't collapse any time soon :)


MikeWPhilly t1_iy8ct4c wrote

You still lose money in bank accounts. To inflation….


TyrconnellFL t1_iy8fi0z wrote

You don’t lose money. You can lose purchasing power, but the numbers in the account will always and only go up.


MikeWPhilly t1_iy8fwap wrote

Tomayto , Tomahto - it’s the same effect. I was pointing it out as acting like you aren’t hurting yourself by putting it in savings is a bad idea. Also while you want an emergency fund, just sticking money in savings and not investing is a very bad idea for long term wealth.


barrycarter t1_iy8xc19 wrote

You're correct, but that's like talking about opportunity cost. For anything I choose to do today, there's a chance there's something I could've done something I'd enjoy more. That doesn't mean I've "lost enjoyment": it simply means I don't 100% optimize my life, which I don't think anyone does.

I agree with that you lose money only in a metaphorical sense. I doubt agencies like the FDIC would reimburse you for "losing money" due to inflation