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Larry Fink says holding cash in bank accounts can be a costly mistake
BlackRock CEO Larry Fink argued at the Milken Institute Global Conference that savers who leave deposits idle miss the chance for assets that may better keep pace with inflation and capital growth.
BlackRock CEO Larry Fink said keeping money in bank accounts is among the worst financial decisions people can make, arguing that many savers are leaving deposits idle instead of putting funds into assets that can appreciate over time.
Fink made the comments at the Milken Institute Global Conference, saying broad participation in investing is becoming more important because wages, he argued, are unlikely to grow as fast as the potential from capital investment in an AI-driven economy.
He also highlighted the tradeoff between short-term safety and long-term purchasing power, noting that even when cash earns interest, inflation can erode its value if returns do not keep up.
The story notes that bank accounts are still used for liquidity and can offer protection depending on the institution, but Fink’s message was that everyday investors should look beyond traditional savings accounts.