Hold Cash or Invest? History Shows Cash Isn’t King for Long
Darrow Wealth Management
MAY 22, 2023
The federal funds rate hasn’t been this high since 2007 when it peaked at 5.25%. Again just using simple math, this presumes the par value will roll over each month and reinvest at the same rate to get to the annual yield. This is a central reason that holding cash isn’t a way to build wealth or even preserve it over time.
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