Every year in cash is a year of invisible losses. The longer you avoid risk, the riskier your life becomes. Here is why cash guarantees loss. 1 (Ryan Greiser, Twitter Oct. ‘25)
Playing it Safe?
- Cash feels safe because the number does not move. But that is the trap. While your account stays at $100,000, your purchasing power drops to $97,000 You do not see it. You wake up 10 years later wondering why everything costs more.
- It’s not that you’re being reckless. You’re being careful. Every dollar in cash loses 3% a year to inflation. Every year you wait costs you a decade of compounding.
Volatility is not the enemy – stagnation is!
- Volatility is temporary. Stagnation guarantees loss
- Between 2015 and 2025, the S&P500 dropped 5 times. Including a -34% drawdown in 2020 during COVID. But if you held cash to “stay safe” you missed a +230% gain.
- That is the cost of confusing comfort with safety
What if “staying out” is the bigger risk?
- Real safety isn’t avoiding risk. It’s surviving it. It’s to design your finances so no loss knocks you out of the game
- Real safety is having enough cash to stay steady when life happens and enough invested to stay ahead when it doesn’t.
2 sleeves to consider
- #1 sleeve: Survival. 3-12 months of expenses in cash. It’s job: keep you in the game when life hits. It’s not earning returns. It’s buying time.
- #2 sleeve: Compounding. Invested for long-term growth. It’s job: fight inflation and fund freedom. You are not chasing returns. You’re staying invested long enough for them to compound
- This system: one protects you from shocks. One protects you from time. Together, they make risk survivable and progress inevitable
Takeaway
- Compounding only works if you stay in the game
- The safest thing you can do is accept that safety doesn’t exist
- Build the system. Stay in the game. Let compounding do the rest
Sincerely,
Mike Busby (1-Dec-25)
THE COMMENTS CONTAINED HEREIN ARE A GENERAL DISCUSSION OF CERTAIN ISSUES INTENDED AS GENERAL INFORMATION ONLY AND SHOULD NOT BE RELIED UPON AS TAX OR LEGAL ADVICE. PLEASE OBTAIN INDEPENDENT PROFESSIONAL ADVICE, IN THE CONTEXT OF YOUR PARTICULAR CIRCUMSTANCES. THIS ARTICLE WAS WRITTEN, DESIGNED AND PRODUCED BY MIKE BUSBY FOR THE BENEFIT OF MIKE BUSBY WHO IS A FINANACIAL ADVISOR FOR BRANDON LINDSAY INSURANCE AGENCIES, A TRADE NAME REGISTERED WITH INVESTIA FINANCIAL SERVICES INC., AND DOES NOT NECESSARILY REFLECT THE OPINION OF INVESTIA. THE INFORMATION CONTAINED IN THIS ARTICLE COMES FROM SOURCES WE BELIEVE RELIABLE, BUT WE CANNOT GUARANTEE ITS ACCURACY OR RELIABILTY. THE OPINIONS EXPRESSED ARE BASED ON AN ANALYSIS AND INTERPRETATION DATING FROM THE DATE OF PUBLICATION AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. FURTHERMORE, THEY DO NOT CONSTITUTE AN OFFER OR SOLICITATION TO BUY OR SELL ANY SECURITIES. MUTUAL FUNDS OFFERED THROUGH INVESTIA FINANCIAL SERVICES INC.
