Investing versus Savings

Savings versus investing -whatís the difference? Savings vehicles always guarantee your principal and interest. The best vehicles for savings are CDs, treasury notes, treasury bills, treasury bonds, and fixed annuities. These products are designed for savings and for protection of your retirement savings.

Investment vehicles are market sensitive and, hence, never guarantee principal or interest. Account values go up and down with the stock market and the economy. The best vehicles for investing are stocks, mutual funds, and variable annuities (market sensitive). These products are designed for potential, but you must be able to afford the risk. Money you invest must be money you can afford to lose.

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