Cash deposits

Cash deposits

“Send a fool to market, and a fool he’ll return.” – Thomas Fuller

Having cash in the bank should be part of every investor’s portfolio but understand that cash gives the worst long-term returns and also gives you no tax benefits. It does, however, represent certainty because the $100 you have in the bank this morning will still be worth $100 if the stockmarket falls during the day. Therefore, keep money for planned expenditure like holidays and buying a car (and of course for emergencies) in cash but try to keep the bulk of your assets in good property and good shares.