There is an Opportunity Cost of Not Investing
Sometimes, putting cash under the mattress may seem like the safest option. You can’t lose money if you hold cash, right? There are many reasons why people may choose not to invest: Markets are near all-time highs, international conflict, scary headlines, the list goes on.
However, there is a real opportunity cost to putting your money under the mattress. The following chart shows how inflation can reduce the purchasing power of money over time. For example, if a person put $100 under the mattress in 1950, that $100 would be worth just $7 today after accounting for inflation, not to mention the potential market growth missed by not putting that money to work.
The price of admission for the stock market is the uncertainty that investors face and downturns that come with it. As this chart illustrates, long-term investors have historically had the opportunity for growth in exchange for accepting that uncertainty.
Source: © Exhibit A, FactSet Research Systems Inc., Standard & Poor’s | Latest: 2026-02-27
This slide is for information and illustrative purposes only. The data provided is believed to be accurate, but there is no guarantee of its accuracy, completeness, or timeliness. This is not a recommendation or offer of any financial product. Past performance is not indicative of future results, and investors should consider their own objectives and risk tolerance. Indices, if presented, do not include fees, are unmanaged, and not available for direct investment. Definitions & Methodology: The S&P 500 tracks the performance of 500 large-cap U.S. companies, serving as a benchmark for the U.S. stock market. The index is weighted by market capitalization. The chart shows the real (inflation-adjusted) price growth of $100 in the S&P 500 since 1950. It also shows the real (inflation-adjusted) erosion of $100 kept “under the mattress.”
