Thanks in large part to the recession of 2008, a lot of people still feel that if they hold onto their cash, if they don't invest it, they are keeping it safe. The fact of the matter is you’re probably losing money each and every year.
“Cash, over a 10 year period, is always a loser. It's always one of the worst asset classes but it feels really good.”
You know what won’t feel good?
Arriving at retirement age and realizing that you just don’t have enough money in the bank to make it.
Jim Dew with Dew Wealth Management told me that millennials and others need to be smart but not stingy when it comes to investing.
“Pensions and Social Security was the retirement of old. Today it's got to be personal savings and personal investments.”
Jim told me that Americans are sitting on $12,000,000,000,000 in cash that is disappearing with a 2% annual inflation rate.
So why not say ‘yes’ to stocks?
More often than not, debt gets in the way.
“Really, these young people have to get on a budget and stick to a plan and start managing that debt.”
And it’s important to not let the events of life prevent preparation for the future.
“The air conditioning unit breaks down and you have to replace it. You need to buy a new car or your car breaks down. You see something you want to purchase and you purchase it. People get driven and pulled in different directions.”
Jim Dew believes that stocks can benefit so many who aren’t yet willing to part with that cash but the quicker they do, the better off they’ll be in the long run. In other words, the risk may definitely be worth the reward.