When it comes to actively saving for retirement, many Americans are either uninformed or unmotivated. This equates to a huge number of citizens that are simply unprepared to achieve financial stability after retiring. As a provider of one of the best retirement planning tools available today, we can help! RFG Global is proud to offer AmerciasRetirementPlan.com, an innovative device that offers safe investment options for the consumer looking to capitalize on their spendings. Besides offering cash rebates on the top products on the market today, our retirement savings plan includes micro-investing options to contribute investment capital to your portfolio. Americans are fans of shopping, yet they are not as inclined to save. Today, we’ll look at the in’s and out’s of saving money versus investing it and what we would deem to be the soundest strategy for achieving financial freedom. You shop and save, we’ll do the rest!
How Are They Different?
The terms saving and investing are often used interchangeably, but for the benefit of our retirement planning tools, we view the terms as two different plans for retirement. Saving is simply the act of putting money away for safe keeping, typically into a secured account with a set schedule of deposits. Budgeting and socking away currency is a much better tactic for achieving financial freedom over no plan at all. Investing, on the other hand, involves putting money toward any assets with the goal of having those assets grow and return profits on the money initially used. In simpler terms, investing is the act of putting money in with the hope that the investment is profitable, gaining capital rewards through a riskier venture than saving. We understand that many Americans understand these concepts, but the statistics show that few utilize them.
Looking at the two options as retirement investment strategies, we can see that each bring their own advantages and disadvantages. For simplicity’s sake, we’ll look at a few main components that consumers should focus on when planning for retirement.
Funds Access
Life happens, and when it does at an accelerated rate, you may be in need of quick cash to cover unexpected expenses. From this point, it’s easy to see that a savings account is a proper solution. Your savings should be easy to access, giving you the money in quick order. Investing, on the other hand, includes numerous rules or regulations that prevent easy access. There are multiple reasons for this, some of which are for your account’s benefit while others are in place to keep the market in a stable state. Funds obtained from investments can occur, but it will tend to take a little while longer. Savings, on the other hand, also has its drawbacks. Plenty of financial institutions put a limit on the amount of savings you can pull out. RFG Global would like to point out that this fact varies and is best found out by talking with your specific bank.
Combining your shopping habits with long-term investment strategies can prove doubly beneficial. Next time, we’ll at a few more main facets that help illustrate the pros and cons of investing versus saving. If you are interested in utilizing our unique retirement planning tools, feel free to contact us now via online to learn more!