When it comes to financial planning for future security, most Americans are able to choose from a number of options. However, many do not capitalize on these programs and fail to save adequate funds on their own. To combat this, RFG Global has created AmericasRetirementPlan.com, a website that turns cash back from shopping into safe investment options for clients to thrive on. Our nation loves to shop, so why not use an innovative retirement planning tool to maximize the enjoyment? In our last blog, we focused on what method any solid retirement savings plan should include between saving capital in an account versus investing it in the marketplace to gain consistent wealth. Our last blog looked at the differences of each strategy and how the ability to access funds can affect your choice. Today, we’ll continue to look at some key factors that can help to clarify what you feel will be the most profitable option for your unique situation.
Risks to Equity
A savings account is typically regarded as one of the safest places to put your money. The Federal Deposit Insurance Corporation (FDIC) has a standard that they will insure the money in your bank account at $250,000. Investing, on the other hand, holds inherent risks. The market can be a very volatile place to invest in because even skilled traders have been known to lose their capital at what seems like the flip of a switch. Our retirement planning software, however, utilizes the best research and planning in order to minimize the risk for our clients. Your savings account may be a solid start for your retirement savings plan, but the higher risk of investing does hold the possibility for higher rewards.
When it comes to earning a return on your investments, both options have their ups and downs. A savings account will typically produce a small yield from the interest that you earn for leaving that cash with a banking institution. This amount, however, is typically a low percentage that should not be counted on for long-term wealth growth. One argument against saving over an extended period of time is currency inflation. If you were to put a $200,000 in an account and leave it there for thirty years, the buying power of the money will erode over time. This amount in 1987 will not be as valuable in today’s modern marketplace. While cash savings is useful, it does not provide the right kind of growth that you’ll be looking for before retiring.
Next time, we’ll look at the earning potential associated with investments and the long-term efficacy of each strategy. Proper planning and execution are required to build a secure future for people looking to enjoy their retirement. Our retirement planning tools work in concert to provide clients with the best options for putting their money to work. AmericasRetirementPlan has partnered with NvestBates.com to create a versatile platform for receiving cash back on purchases from the top name brands. Now you can redeem your cashback rewards and choose to invest in a one of several IRA options to diversify your financial portfolio. To learn more about our programs and safe investment options, feel free to contact us online or sign up now!