If you are like many North Americans, you may have a fair bit of money tucked away in “safe products” (savings account, term deposits, money markets). Investing in conservative products can provide peace of mind, yet if the bulk of your investments are invested in “safe” products it can actually be quite risky. You are likely trying to shelter those sums to preserve your capital. Nonetheless, you must ask yourself, are you really preserving capital? More importantly, are you preserving your buying power? You may be preserving the face value of your capital, however, simply because you are not losing money does not mean you are not losing ground. In fact, you may be eroding your purchasing power if you are not earning at an interest rate above inflation. This loss of buying power impacts how far your savings will go; what a dollar could buy a year ago, will not go as far today. And that sum of money you have banked away, it may be slowly eroding in terms of purchasing power. The learning here, there is no vacation from inflation, invest your money and savings wisely.