MONDAY UPDATE: Inflation is real!

You might feel safe with cash. After all you won't be saddled with the volatility of the stock market or as interest rates rise the falling value of your bonds. But is cash really king?

The problem is that if your money isn't outpacing inflation it's actually worth less each day. Follow me. Do you remember when a quarter would buy you a soda? Sheesh, I remember when a dime would! Gee, I'm old! Anyway, that quarter you put away in your youth doesn't have the same value today because prices kept going up while your quarter was still a quarter.

So if inflation is, say 2.50% and your money market account is yielding you 0.10% then each year your money is buying you 2.40% less. Compounded over time you're cash is actually dwindling in value. Can you fix that without increasing risk dramatically? Let's see: interesting