You make a steady income, have paid down your debts and you put money into a savings account every month. Generally speaking, you’re on a good path, right? But is this the best way to create wealth? Not exactly. So, what should you do with your savings?
Most people consider savings accounts to be beneficial, but the problem with savings accounts is that the rate of return is much lower than the rate of inflation. This means that your savings is sitting in the bank when it could be creating more wealth for you instead.
Stop “saving” and start creating wealth
The short answer to the question: what should you do with your savings? Invest.
Here are some easy steps you can take that will help you determine what you should do with your savings, and assist you in launching an actionable plan to help you create wealth with the money you’ve worked so hard for.
Are you investing in a Roth IRA or 401(k)? Are you maxing out your contributions each year? If you aren’t, then you should take advantage of these programs (particularly if your employer matches your contributions), and begin to put more of that money you have designated to your savings account toward your retirement instead.
Utilize a fiduciary advisor
Wealth management can seem daunting and even confusing, which is why we always recommend that would-be investors utilize a fiduciary financial advisor to receive honest and ethical investment advice. A fiduciary advisor will have your best interests in mind when it comes to helping you determine what you should do with your savings.
At LexION Capital we believe that there is no such thing as a “one-size-fits all” investment strategy, which is why we work with our clients individually to create unique investment strategies that will help them reach their goals.
Once you have saved six to eight months of real living expenses in your savings account, you should invest more of your excess in the stock market. Failing to invest in the markets can be a bigger risk than investing, so when it comes to what you should do with your savings: invest!
Want to know more about what you should do with your savings? Reach out to a LexION Capital fiduciary advisor today.