, plenty of people seem to be wondering why they would bother with risky stocks for their long-term investments when they can earn 5 per cent on their cash with a high-interest savings account ETF?
As a long-term investor, falling interest rates are a major risk. They mean that you need to save more or spend less to meet your long-term goals, all else being equal. Low expected returns increase the risk of inflation eroding the purchasing power of cash. This is especially problematic at long horizons.
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