There’s a common misconception that cash is a risk-free investment. Some investors find emotional comfort in building cash stockpiles even though they’re ignoring the daily effects of inflation. On the other hand, no one denies the increased cost of living that we each witness over our lifetime, as the example of milk pricing demonstrates above. The challenge? Avoid acting on emotion and leaving large sums of cash on the sidelines. Trust in a well-designed investment plan to provide for your future and offset the effects of inflation.