‘An investment in knowledge always pays the best interest.’

Author unknown, commonly attributed to Benjamin Franklin

Cash has historically been a poor store of value, particularly over the medium to long term. It is, however, the best home for capital that may be needed within the next three years to meet any planned and unplanned expenditure. We refer to such capital as ‘savings’ because it is earmarked for short-term needs and as such we are less worried about inflation and more concerned that the value won’t fall in nominal terms (i.e. excluding the effects of price inflation). There is no point in committing capital to a diversified investment portfolio, only to find that you need to sell some of it at ...

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