The dollar's value has not held up well during the past century, and its prospects in the coming century could be dimmer. In contrast, stocks' long-term returns have been stellar.
So, why should investors, in general, and near-retirees, in particular, make a large commitment to cash, as I have been wanting to recommend?
A Warren Buffett quote pithily penetrates this core requirement of investing: "In order to succeed, you must first survive."
Among the non-survivors are lots of investors who despised the wasted opportunity of a cash drag.
It takes $26 to buy what one dollar could buy in 1913. So, why should retirees want dollars, which may fare even worse in the coming decades?
This podcast (5:38) argues that disparaging cash as trash misses a paradox that Warren Buffett penetratingly expressed, that "in order to succeed, you must first survive." With enough cash not just to meet their expenses but to re-risk their portfolios with new stock investments - retirees can both survive and thrive.