Q. Where can I save money and earn a higher rate than a checking or savings account?

A. Not to give you a growth in your brain but this is the difference between savings at a financial institution and investing in the stock market. (Need some foil to wrap around your head and deflect the death rays?) If you want easy and constant access to money the trade-off usually is a low rate of return, or interest. If you can do without immediate access the potential exists for higher returns. At a financial institutions there are CD - certificates of deposit - that hold a minimum amount of your money for longer periods of time in exchange for slightly higher rates of return.

Want the potential for more return? That's the role of investing in businesses through the stock market. Investing in a mutual fund or individual stocks over time may produce a higher return than the checking account.

Investing in stocks bonds or mutual funds, which is what I mean by investing in the stock market, is not generally advised for short-term investing. If you can do without immediate access the potential for higher exists for higher returns, but keep in mind with the potential for higher returns also comes a certain amount of risk. If you are saving for a few years it might be a great choice for you.

Marion R. Syversen, MBA - President
NorumbegaFinancial
207.862.2952
Marion@NorumbegaFinancial.com
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Disclosure:
Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Norumbega Financial and Wall Street Financial Group, Inc., are separate entities, independently owned and operated. All purchases are subject to suitability and risk; some types of risk include market fluctuation, interest rate risk and liquidity risk. Please consult with your financial advisor prior to making any purchases.

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