A savings is something that when set aside promises safety of principal and an adequate return. Financial vehicles not meeting these criteria are investments or speculations. After the great market decline of 1929-1932 all common stocks were widely regarded as speculative by nature. The distinction between saving versus investing had and will be a useful one and its disappearance is a cause for real concern. You see by the disappearance of a true savings we were taught to invest or speculate in its place, and expecting to receive a substantial return in the process, this type of thinking sets us up for major losses while expecting a safe and secure retirement which will only happen a small portion of the time do to being placed in a virtual losing situation right from the start.
It should be said that Wall Street as an institution would be well advised to emphasize the differences of saving versus investing and make it clear that a 401k, IRA or Keogh plan isn’t saving but it is in fact investing and emphasize it in its dealings with the public so they are informed on the fact, that they are investing and not saving for their future. These very facts would give the public the understanding and the knowledge to make different choices with their money and allow them to make better informed choices for their futures. Saving versus Investing is what will bring you out of the speculation and investing cycle that has keep you on the roller coaster of the stock markets clutches for so long.
We can now see that saving versus investing can be measured over a period of time and people that have been investing may at some point realize that they were putting their money at risk, now people could in fact blame the stock exchanges for their heavy speculative losses because those that suffered them weren’t properly warned or informed against what the risks were to their retirement funds and their retirement plans. Saving with a financial tool which increases in value when the dollar goes down and keeps its value when the dollar goes up can put you in an extreme advantage and allow you to take back control of your finances and even allow you to control the market if you will. Saving versus Investing can transform your funds in a short period of time and change your life in the long term. If you would like more information on saving with the correct financial tool then click the link in the resource box below.