Why “Safe” Investments Could Be Costing You
The hidden risk in high-yield accounts
Some of the “best” investments out there? You should probably avoid them.
Yes — even that 4% high-yield savings account everyone’s raving about.
These accounts, along with certificates of deposit and even cash under the mattress, are marketed as safe, smart places to park your money. But when you run the numbers, the story changes.
The Problem with “Safe”
Let’s say inflation is running at 2.3% and your account earns 4%.
That means your real return is just 1.7%.
On $100, that’s $1.70 a year. Unless you’ve got millions sitting around, that’s not going to move the needle — not for retirement, not for financial independence, not for generational wealth.
These tools aren’t wealth-building strategies. They’re simply parking lots for cash.
Where They Do Make Sense
To be clear, I’m not saying don’t use them.
High-yield accounts can serve a purpose: keeping about $10,000 in liquid reserves for emergencies. I do this myself.
But don’t confuse an emergency fund with a long-term investment strategy. They aren’t the same thing.
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The Better Path
If you want your money to truly work for you, you need assets that do more than keep pace with inflation.
That means:
Cash-flowing real estate that pays you every month.
Private debt investments with higher yields and downside protection.
Inflation-beating assets that grow while they generate income.
Your money should work harder than a bank account ever will.
“Safe” doesn’t always mean secure — especially when it comes to long-term wealth.
Keep some cash liquid for peace of mind, but put the rest into investments designed to grow, protect, and compound.
Jon
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