Simple – BOTH. While they may sound similar in nature, they are actually very different from one another. It’s really a risk vs. reward discussion and what your comfort levels are with each.
When I think of savings, I’m thinking of your emergency fund first and foremost. My goal is to help you build a pool of money, in the bank, that you can access when your car needs repairs or your washing machine decides to stop working. It’s the level of comfort and cash you might need in the short-term to solve a problem at hand. In my world, this is a low-risk, low-reward safety net. This is NOT investing. This is peace of mind.
Investing, on the other hand, is another form of savings, but for the long-term. And by long-term, I mean years from now or even into retirement. Since these dollars are not earmarked for emergencies today, you are willing to take on a higher level of risk to achieve higher levels of return over the long-haul. Your IRA and 401(K) accounts are great examples of investing.
Still not sure what all of this means to you? Call M.A.P. today and let us help you get sorted out!
Christopher E. Wasson, CFP®
Your local Towson Financial Advisors
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Mosaic Asset Partners, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results.