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Saving vs. Investing – What is the right choice for me?

June 01, 2020
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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 saving, 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.

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®

President

https://www.investopedia.com/articles/investing/022516/saving-vs-investing-understanding-key-differences.asp

https://www.thebalance.com/saving-money-vs-investing-money-358062

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