SAVING VS INVESTING ( which is better – saving or investing?)

iynna's profile thumbnail
This isn't black and white, it all depends on anyone's individual situation and priority. This is in fact something we are discussing in the community this week for @bzzybee's question of the week https://elpha.com/posts/p0ficvo9/what-are-your-financial-goals
KarenRichard's profile thumbnail
Thank you for your contribution dear friend...Definitely looking forward to the discussion
KristineBeese's profile thumbnail
It's really important for women to know how the retirement investing differs between women and men. Women earn less money throughout their lifetimes, and because they are more likely to take career gaps and work part-time, they have less money in their government and corporate pensions, so have less money coming in after retirement. Women usually can't save enough for retirement, they need to invest in order to get there. The best thing you can do for your retirement is to start EARLY. $100 invested at 25 can turn into $1000 by 65 (at a 6.1% return after fees), but using the same assumptions - $100 invested at 45 only turns into $300 by age 65. TIME is your biggest advantage when it comes to investing. Lastly, studies show that women need to put 18%-20% of their after tax earnings into retirement funds in order to have the recommended amount for retirement. When you hear put 10-15% of your money into investments for retirement - that rule of thumb is geared to men. It completely sucks, but given how much time is a factor, it's better to know TODAY that the financial statistics are not in our favour, and while we advocate and demand change on things like gender pay equality, and the removal of the Pink Tax (we pay ~$2k/yr more for everyday items then men - including for financial products like mortgages and credit cards); we can also help ourselves by doing everything we can to set ourselves up for success. (This might mean saving less for retirement, and knowing you'll need a roommate in the future to reduce costs - this doesn't mean giving up what's important to you. It's about trade-offs and figuring out the best path for you with the best inforamtion).
iynna's profile thumbnail
Well said - thank you so much for sharing!
KarenRichard's profile thumbnail
Thank you for this