The registered investment management advisors at AOG Wealth Management provide financial services to help maintain and grow our clients’ wealth. We actively monitor investments and customize client portfolios to match their risk/reward profile and to help them better meet their financial objectives. In today’s post, we discuss the key differences between saving and investing:
Differences Between Saving and Investing
The biggest difference between saving and investing is risk. Saving carries minimal risk but also yields minimal gains. Meanwhile, investing offers the potential for better gains but also the potential for loss. The priorities for saving and investing are also different. As a rule of thumb, you should save for the short-term and invest for the long-term. Whether you should focus on saving or investing depends on your goals.
Typically, long-term is over seven years while short-term is under seven years. However, don’t be too focused on the specific number of years. As a wealth management solutions provider we suggest focusing on when you will need the funds, what your plan is for the funds, and the safety and risk associated with the funds. Both saving and investing are important and you should do both as early as possible.
When to Save vs. When to Invest
Saving is best used for funds that may need to be available in the short-term and that have a low risk of losing value. For example, you can use your savings for purchases and emergencies. When it comes to investing, the goal is for the funds to make you money, which is why investment vehicles have a higher amount of risk involved. Investing should focus on long-term goals rather than specific purchases.
We use our decades of experience and extensive knowledge to provide asset management services that can help you meet your goals. Our investment strategy always starts with establishing a good relationship with each client so we can better assist them in their journey towards financial freedom. Call us at (866) 993-0203 to learn more about our services. We help clients in Great Falls, VA, and nearby areas.