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Larry Fink, who runs BlackRock — the largest money manager on earth — recently called leaving your money in a bank account “one of the worst financial decisions of a lifetime.” (1) He said it at the Milken Institute conference, arguing people should own productive assets like stocks and real estate instead. (1)
I’ve got standing to weigh in on this one. I was a stockbroker during the 1987 crash, I sold bonds back when they paid double digits, and I’ve invested my own money in the markets for 45 years — and made millions doing it.
So is Fink right? Mostly. But there’s one place cash absolutely still belongs, and a CEO worth billions is the last person who’d feel why.
Here’s the math behind his point. The national average savings account pays well under 1% a year. (2) With inflation running higher than that, money sitting in a typical big-bank account is quietly losing purchasing power every single day. (2)(3)
Let me split the difference — where he’s right, and the exception he skips.
1. What Fink actually said
Fink’s argument is that in an economy increasingly driven by capital and technology, wages won’t keep up — so the way to keep pace is to own a slice of that growth, not to sit in cash. (1)
He’s not wrong that owning productive assets has been the reliable path to building wealth over the last century.
2. Where he’s dead right
Money in a typical big-bank savings account earning a fraction of a percent, while prices rise faster, isn’t “safe.” It’s a slow, guaranteed loss of buying power. (2)
Over decades, that gap is brutal. Cash has never come close to keeping up with a diversified stock portfolio over long stretches — that part of Fink’s warning is just arithmetic. (3)
Quick gut-check — if your money advice is coming from random online influencers, you’re playing a dangerous game. I’ve been a CPA since 1981 and writing about money since before the internet existed. Sign up for the free Money Talks Newsletter and get expert advice that’s been tested by time.
3. The exception a billionaire forgets
Here’s what Fink glosses over: you need cash you can grab tomorrow. An emergency fund — three to six months of expenses — belongs in cash, and so does any money you’ll need within a few years.
That money isn’t “invested” and shouldn’t be. Its job is to keep you from selling stocks at the worst possible moment, or reaching for a credit card when the car dies. A man with a billion-dollar cushion doesn’t think about that. You have to.
4. Move the long-term money off the sidelines
For the money you won’t touch for years, though, Fink has a point — sitting in cash is a slow leak. The fix isn’t complicated or expensive. It’s to earn the most interest you can from your savings.
If you’re still at a traditional brick-and-mortar bank, you may be paying monthly checking fees while earning almost nothing on your savings. Banks like SoFi offer a combined checking-and-savings account with higher rates and no account fees.
With eligible direct deposit or $5,000+ in qualifying deposits every 31 days, you can earn 3.10% APY on savings — many times the national average — plus 0.50% APY on checking.
New members may also qualify for a limited-time APY boost that lifts savings up to 3.80% APY for up to six months. (APYs are variable and can change at any time.)
New members who set up qualifying direct deposit may also be eligible for a cash bonus of up to $400, based on the amount deposited. Terms apply — see details.
Earn up to 3.80% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account between 3/31/26 and 12/31/26, then within 60 days of account opening receive an eligible direct deposit OR $5,000 or more in qualifying deposits. You must maintain eligible direct deposit or $5,000 in qualifying deposits every 31 days to keep the Boost, for up to 6 months. Rates variable, subject to change.
Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
5. Not sure how much to keep in cash? Get a plan
The real question isn’t “cash or stocks.” It’s how much of each, for your age and your goals — the line between your safety cushion and your growth money.
That’s why sometimes the best idea is to talk to a pro. Services like SmartAsset match you free with up to three fiduciary advisors, legally required to put your interests first, who can draw that line with you and build the plan around it.
If you've got $100,000 or more, get matched with a fiduciary advisor free.
The bottom line
So Fink’s right — with an asterisk. Leaving all your money in the bank is a mistake that compounds against you year after year. Leaving some of it there, the part you might need next week, is just common sense.
The trick is knowing which dollars are which. Keep your safety money boring and reachable. Put your long-term money to work so it can actually grow. Do that, and you get the best of what Fink is preaching — without the sleepless nights he’ll never have to worry about.
Sources: 1. Yahoo Finance; 2. FDIC; 3. Forbes Advisor
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