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To save or invest?

That is the question…and well it's a pretty good one to have.

We are all on unique journeys of our own as it relates to both concepts. So really, it could be a combination of both?

Since we are in a new year, I thought it might be helpful to share some ideas on how to combine both saving and investing in a simplified way.

Saving. Can you make it automatic?

Setting up automatic savings contributions from your paycheck or bank account to a savings account or investment account is a great way to stay consistent. This can help you stay on track to saving and/or investing without the manual trouble.

Secondly, consider a high-yield savings account. A high-yield savings account is a savings account that offers a higher interest rate than a traditional savings account. They can be upwards of 3% vs. the national savings rate of .06%. This can be a great option if you want to save money or have a lump sum of savings already that you’d like to earn some interest on.

Invest in a diversified portfolio. A diversified portfolio is a collection of investments in a variety of different assets, such as stocks, bonds, and cash if traditional or alternative assets such as art, real estate, commodities, and private equity etc. This can help spread risk and potentially increase your chances of earning a higher return on your investments.

You can invest in a mix of both or start with one type. Whichever one suits your goals and gives you the outcome you are looking for. Analyze all approaches. If it's cash flow you want, go for assets that provide this like real estate. If you like volatility and some risk, maybe stocks are what you want. I won't say either is bad, in fact I do it both. This is just to share that there are options...we are not one size fits all!

Another way to invest is through using tax-advantaged accounts. They fare well for some people. Although I'm not entirely privy to the whole 59.5 year tap in, I do think for some people they could benefit from these types of accounts. 401(k)s and IRAs fall into these buckets. Contributions to these accounts may be tax-deductible, and the investment earnings may be tax-deferred or tax-free.

A new and interesting dynamic has reached the market. For those wanting to get started but do not have the time or expertise to do it solo, a robo-advisor may come in handy. It’s a digital platform that uses algorithms to not only create but also manage investment portfolios for you. This can be a good option if you are looking to “dip your foot” into the investing world with little money to start. Here, you are exploring options but really it's a way to get started if you've done nothing else and need some help. I've tried it before, just to see how it worked.

Disclaimer: Remember, it's important to carefully consider your financial goals, risk tolerance, and other factors before making any investment decisions. It’s also wise to consult with your CPA or Financial advisor to help you with a customized approach for your situation.

And as always, if you want to learn more about something or have questions, you can find me on LinkedIn or send me a message.

Happy investing!


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