Billionaire BlackRock CEO Larry Fink Says One of ‘Worst’ Financial Decisions You’ll Ever Make Is Keeping Your Money in the Bank
Mon, August 17, 2026 at 5:01 PM GMT+3 5 min read
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A savings account may feel like the safest place to park cash, but BlackRock CEO Larry Fink says playing it safe can come with a hidden cost that compounds over time.
"Having your money in a bank account is one of the worst financial decisions of a lifetime," Fink said at the Milken Institute Global Conference in May. "And so trying to get more and more people to grow with our country and to invest side by side, that is the only way we are going to broaden economic success."
Fink made the comments during a conversation with Brookfield Corporation CEO Bruce Flatt, arguing that too many people allow their savings to sit in cash instead of owning assets that have the potential to appreciate over time.
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He said broader participation in investing is becoming increasingly important because wages alone are unlikely to keep pace with wealth created by capital.
"We are not going to be able to broaden economic success only by wages because wages in this AI world are not going to grow as fast as the potential of the AI growth and the capital that is going to be invested," Fink said.
Cash Feels Safe, but Inflation Doesn't Stand Still
Fink has spent years encouraging everyday investors to think beyond traditional savings accounts, and his comments come at a time when Americans collectively hold trillions of dollars in bank deposits.
While cash plays an important role for emergency savings and short-term expenses, money that sits in a bank account for years can gradually lose purchasing power as inflation pushes the cost of goods and services higher.
Historically, stocks, bonds, real estate and other productive assets have generated stronger long-term returns than cash, though they also come with greater risk and no guarantees.
That difference is at the heart of Fink's argument. Rather than simply preserving wealth, he believes more people should have the opportunity to participate in the growth of the broader economy.
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Real Estate Has a Lower Barrier Than Many Think
Fink's remarks centered on putting capital to work instead of leaving it idle. There are many ways investors can do that, from stocks and bonds to private markets and real estate.
For those interested in real estate, buying an investment property has traditionally meant saving for a large down payment, qualifying for a mortgage and taking on the responsibilities of being a landlord. Today, there are alternatives.
Arrived is a platform that lets people invest in fractional shares of residential real estate for as little as $100. Instead of purchasing an entire rental property, investors can own shares of professionally managed homes, earn passive income from rental payments and potentially benefit from long-term appreciation—all without managing tenants, handling maintenance or taking on a mortgage.
Fink's message wasn't that bank accounts have no purpose. They remain essential for everyday spending, emergency funds and short-term savings. His broader point was that long-term wealth has historically been built by owning productive assets, not by leaving every dollar sitting in cash.
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Building Wealth Across More Than Just the Market
Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.
Arrived
Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.
Realberry
Institutional-quality real estate has traditionally been difficult for individual investors to access. Realberry gives accredited investors direct access to private real estate opportunities backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests.
FarmTogether
Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.
Fundrise
Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.
Mode Mobile
Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day. Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte's fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.
EquityMultiple
For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.
Image: Shutterstock
This article Billionaire BlackRock CEO Larry Fink Says One of 'Worst' Financial Decisions You'll Ever Make Is Keeping Your Money in the Bank originally appeared on Benzinga.com
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