A Brutal 2020–2025 Reality Check Nobody Likes to Talk About
January 2, 2020.
The market just opened. The economy looked unstoppable. Stocks were at all-time highs.
You had $10,000 sitting comfortably in your bank account.
And you made what felt like the smart decision.
You kept it in cash.
No stress.
No volatility.
No risk.
Fast forward to November 19, 2025 — and that “safe” decision quietly cost you $10,132.
Not lost.
Not gambled.
Missed.
Here’s the uncomfortable truth most people avoid.
Two Choices. One Decision. Massive Consequences.
Back in 2020, you had two options:
Option A: Play It Safe
Keep $10,000 in a high-yield savings account earning around 0.5%.
✔ Guaranteed
✔ Stable
✔ Zero volatility
Option B: Take the Market Risk
Invest $10,000 into VOO (Vanguard S&P 500 ETF) at around $298 per share, owning 33.51 shares of the 500 largest U.S. companies.
✖ Volatile
✖ Scary
✖ Risky
On paper, cash looked smarter.
Until reality hit.
Then Everything Collapsed (And This Is Where Most People Failed)
81 days later, the world shut down.
COVID hit.
Markets crashed.
Fear exploded.
VOO plunged 26.9% in just 11 weeks.
Your $10,000 investment briefly dropped to $7,347.
This was the moment that separated long-term winners from emotional sellers.
Most people panicked.
They sold.
They locked in losses.
But what if you didn’t?
The Recovery Nobody Expected
The market didn’t wait for permission.
By May 2020, VOO recovered.
By December 2020, your $10,000 became $11,697.
Meanwhile?
Your “safe” cash earned about $50.
That’s when the gap quietly began forming.
The Explosion Years (2021–2024)
-
2021: VOO surged 27% → Portfolio: $15,043
-
2022: Inflation spiked, VOO fell 19.5% → Portfolio dipped to $12,311
-
But dividends kept paying, buying more shares at lower prices
-
2023: VOO rebounded 24.3%
-
2024: Another 23.3% gain
By the end of 2024, your investment hit $19,394.
Cash holders felt “safe”… but inflation was quietly eating them alive.
The Final Scorecard (2025 Reality)
By November 19, 2025:
💰 VOO Investment: $21,927
💸 Cash Savings: $11,795
📉 Opportunity Cost: $10,132
For every $1 earned in cash, VOO made $6.64.
-
Cash return (5 years): 17.9%
-
VOO return (5 years): 119.2%
-
Cash annualized: 2.16%
-
VOO annualized: 14.29%
This isn’t opinion.
This is math.
The Inflation Trap Nobody Warns You About
Your $11,795 in 2025 sounds higher…
But after 24% cumulative inflation, it’s worth only $9,497 in 2020 dollars.
You didn’t get richer.
You got poorer — safely.
Meanwhile, VOO didn’t just grow — it compounded.
Reinvested dividends turned 33.51 shares into 35.99 shares.
Cash can’t do that.
When Cash Does Make Sense (Yes, There Are Times)
Cash is smart when:
-
You need a 3–6 month emergency fund
-
You’re saving for a short-term goal (<3 years)
-
You truly can’t handle volatility
But if you have excess cash and a 5+ year horizon, holding cash is mathematically expensive.
The Question That Changes Everything
How much cash are you holding right now?
-
$50,000 in cash instead of VOO → ~$50,000 opportunity cost
-
$100,000 in cash → six-figure mistake
That’s earlier retirement.
That’s freedom.
That’s time you never get back.
Want to Start Investing in ETFs Like VOO the Smart Way?
If this story hits close to home, the next step matters.
👉 Use moomoo — a powerful, beginner-friendly broker that lets you invest in ETFs like VOO with advanced charts, real-time data, and low fees.
🔗 Open your moomoo account here:
https://j.moomoo.com/0xFRE4
Don’t wait for the “perfect time.”
Time is the advantage.
Final Thought:
The market doesn’t care about fear.
Inflation doesn’t reward caution.
And time in the market beats timing the market — every single time.
So…
How much money are you leaving on the table right now?
#VOO #ETFInvesting #PassiveIncome #InvestingTruth #FinancialFreedom #WealthBuilding #Moomoo #StockMarket #OpportunityCost #LongTermInvesting
Disclaimer: This content is for educational purposes only. Past performance does not guarantee future results. Always do your own research and consult a licensed financial advisor.
