The Inflation Tax on Uninvested Cash

In this episode of Inflation and Your Money, Lucas and Luna discuss the real cost of holding uninvested cash in a high-inflation environment. With the Fed funds rate at 3.62 percent but CPI still running above 3 percent, many savers are losing purchasing power even in high-yield savings accounts. They examine the gap between nominal returns and real returns, using current data showing a 2.36 percent 10-year breakeven inflation rate. Luna shares a recent survey revealing that 40 percent of Americans keep over $5,000 in checking accounts earning zero interest. Lucas explains how inflation erodes the real value of emergency funds and offers practical strategies like I bonds and short-term TIPS ETFs. They also touch on the recent market sell-off, with the NASDAQ down 5.1 percent over five days, and why cash isn't a safe haven when inflation is high. #CashDrag #InflationTax #RealReturns #SavingsAccount #PurchasingPower #FedFundsRate #CPI #TIPS #IBonds #EmergencyFund #OpportunityCost #PersonalFinance #Investing #FexingoBusiness #BusinessPodcast #InflationAndYourMoney #LucasAndLuna Keep every episode free: buymeacoffee.com/fexingo