Savings

The average individual undoubtedly understands that there is a difference between saving and investing, even if those terms are sometimes used interchangeably. The key to taking advantage of saving and investing is understanding the difference between them. In short, saving and investing differ in terms of risk and liquidity.

Just as a distance runner might find it difficult to focus on an entire marathon, investors struggle to stay on a path toward a financially healthy retirement. Preparing for your retirement finances should be viewed as a marathon, rather than a sprint. Unless you win the lottery tomorrow, you are not going to be prepared to retire at the end of the year or even the end of the decade.

Hiring a financial advisor is like selecting the right mechanic for your car. Although the stakes are not the same, you wouldn't trust your vehicle to someone who is going to suggest unnecessary repairs and upgrades just to line their pocket with more money. You should put the same effort into finding the right financial advisor.

The word retirement and all the financial responsibilities it encompasses tend to loom over the lives of many Americans as a daunting thought. As a result, preparation for the future often shifts to the backburner. Retirement should be the best time of your life – something you look forward to, a destination you strive to reach.

There are few things more nerve inducing to investors and the general public than a recession. Economic slowdowns occur from time to time, but a recession marks a sustained dip in economic performance. A recession is rarely good for your investment portfolio, but it does not have to be a bad thing either.

There's no set age at which Americans should start investing. For most people, it's a matter of having the financial stability to cover important obligations such as rent, car payments, and grocery bills, with just enough left over after spending their fun money to set some aside for retirement.