5 ms·
Your first sentence is wrong for many scenarios and is meaningless without a time interval. Over a period of 10 years the risk historically is absolutely higher
by mapgrep 5y ago
Your first sentence is wrong for many scenarios and is meaningless without a time interval. Over a period of 10 years the risk historically is absolutely higher from inflation than a total market mutual fund.
If people were good at sweeping excess balances into their investments I think this idea would be less appealing. But for a variety of reasons, many perfectly rational, people like having a nice cushion in there. It feels safe. Long term, it isn’t. These guys should lean into that in their marketing.
- akerl_ 5y agoMy checking account (and the checking account of the majority of Americans) isn’t measured in intervals anywhere close to 10 years. The reason perfectly rational people like having a cushion in their checking account is that rent payments don’t care about 10 year historic trends; they’re just due when they’re due. I’m sure there’s a decent collection of people here with enough disposal income that the idea of just having all their capital invested sounds lovely. But we’re inside a bubble here.