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Moneywise

Investing in cash a 'big mistake' for the long-term

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  • prelax Murray, UT
    Aug. 1, 2013 3:01 a.m.

    Americans don't trust their government or business right now. And if you invest in stocks, and cash out during market downturns, you would of been better off with cash.

    Pension fund managers love it when the individual invests. They pull their money out when stocks are high, causing a downturn, then reinvest when the stock nears it's bottom. The small investor loses 40% of their lifetime savings, and pulls out of the market. They can't afford the long term rollercoaster. The odds are with the house.

  • K Mchenry, IL
    Aug. 1, 2013 5:59 a.m.

    Many who have cash in long term savings don't have short term savings to speak of.

  • Ironmomo Ogden, Utah
    Aug. 1, 2013 6:45 a.m.

    Yes, but at least my financial adviser doesn't have to go through the agony of explaining to me why I lost 50% of my portfolio value 10 years from now. Why?... because nothing has been fixed and what we saw happen in the last few years will be repeated.

  • John20000 Cedar Hills, UT
    Aug. 1, 2013 9:50 a.m.

    If you need the money this year, use a savings account.

    If you need the money in three years, invest in bonds.

    If you need the money in five years, invest in companies that pay dividends.

    If you need the money in eight years, invest in indexed companies.

    If you need the money in 12 years, invest in small companies.

    If you need the money in 15 years, invest in growth companies.

    If you need the money in 20 years, invest in real estate.

    If you don't need the money, go to Vegas.

  • Brave Sir Robin San Diego, CA
    Aug. 1, 2013 11:21 a.m.

    Investing in cash may be a "big mistake" as this article says, but at the end of the day you can't buy food with stock certificates.

  • NeilT Clearfield, UT
    Aug. 5, 2013 10:07 a.m.

    I would never invest in cash. If you are loosing money in stocks it is your own fault. I own stocks, bonds, real estate, gold funds. The internet has changed everything. I check my investments daily. Sir Robin. I haven' seen a stock certificate in years. Stop listening to all the naysayers and tune in Bruce Lafave, Ramsay or other investment gurus.