Liquidity can be advantageous for short-term goals at different moments in life, and an accessible emergency fund with approximately six months of living expenses is advisable. However, beyond these considerations, cash in the bank or under your mattress doesn’t serve your financial goals.

Multi-generational financial legacies begin with smart investments. Doesn’t your hard-earned money deserve more opportunity to grow?

Multi-generational financial legacies begin with smart investments.

In high-inflationary environments, the lost purchasing power of cash in hand is easy to witness. Cash doesn’t increase like the price of eggs or milk. In truth, inflation cuts purchasing power in both dramatic and more steady economic cycles.

Idle Cash Means Idle Growth

Cash sits. Thoughtful investments are primed for formidable financial growth.

Furthermore, alternative investments – like real estate – historically outperform bonds and U.S. equities.

Treasury bonds and bills may predicably have less volatility and smaller returns, but even with the greater volatility of the S&P 500 and its potential for larger returns over time, private real estate investments have proven more lucrative.

Cash may feel like a security, but historical wealth strategies outperform inertia.

There is no one-size-fits-all for portfolio diversification. Each investor needs to understand their risk tolerance and their individualized long-term financial goals.

Even so, real estate has been the basis of family wealth since before the formation of the United States. Today, real estate investments have more metrics and data-driven indicators than ever before, and with opportunities like Delaware statutory trusts (DSTs) and real estate investment trusts (REITs), qualified investors can access investment-grade real estate they would not otherwise be able to afford on their own.

Doesn’t your hard-earned money deserve more opportunity to grow?

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This article originally appeared on Capital Square's website.