Where Should We Put Our Money?

Where Should We Put Our Money?

Although the amount we save is likely to have a bigger impact on our well-being than how we invest our money, we still need to invest it wisely. Choosing among the myriad of savings and investment options available can be overwhelming. How can we know where is the best place to put our money? Here’s some perspective from an investment advisor. Everybody Wants to “Help” You Invest. Countless financial institutions are constantly clamoring for us to park a piece of our pie with them. Why? That is how they make money. Unless we bury our money in the backyard, someone is going to make money off of our money no matter where we park it, even if it merely sits in a bank account. This is not a problem as long as we receive the benefits we expect in return. In order to be sure that the financial institutions meet our objectives and not just their own, we must be clear about what we are trying to accomplish with each dollar we deposit. My motto for savings and investment advice is “safety before speed.” Would you buy a car that can go from zero to sixty miles per hour in less than three seconds if it were not also equipped with excellent brakes, seat belts, and air bags? The potential rate of acceleration is much less important than the ability to avoid or minimize the impact of a crash. Without the safety elements, you may never reach your destination, no matter how fast you can go. Money works the same way. Many people lose the opportunity to be financially...