Let's not confuse 'saving' with 'investing' …

This goes back to a comment that I received in response to a question posted on another finance blog - one that I happen to like for early-stage savers …

I suggested that for many people, their retirement savings actually won’t be enough to fund their ideal retirement … if they’re happy to accept less, fine!

If not, then I suggested that they may need to do something a bit more active to pick up the pace …

Here is a response that I received:

“Your investing approach of “actively (business, real estate, trading)” sounds more like speculating and your savings approach (CDs, 401ks, etc.)” sounds more like investing to me. Just based on the statistics of individuals who trade rather than index…most get eaten up by fees while compounding growth usually is the better way to go using monte carlo analysis, But who knows what will happen in the future.

One Response to “ Let's not confuse 'saving' with 'investing' … ”

1. Index Funds or ETF’s … you choose … « How to Make 7 Million in 7 Years™ says:

   March 22, 2008 at 7:07 am

   [...] don’t kid yourself, these are savings plans, not Investment plans (there is a difference) [...]