When it comes to investments, most people are either an investor, saver, or a combination of both. This month we unpack various investment vehicles relevant to both savers and investors, and how a balanced approach can impact your savings strategy.
Answer these questions about your savings and investment habits:
- Does the idea of investing sound daunting to you?
- Do you consider a bank savings account “safe” for your savings?
- Does the unpredictability of returns scare you?
If most of your answers to the above-mentioned questions were “yes”, you are most likely a saver rather than an investor.
The following illustration shows the key differences between investing and saving and finance products that relate to each:
The savings products present a more conservative approach to consider if you are a saver personality. Consider incorporating at least one investor product into your savings strategy for a more balanced portfolio and for the opportunity to gain higher returns.
If you already are an investor personality, consider whether any of the savings products could be slotted into your portfolio for a more stable return. The above-mentioned illustration should provide you with a simple overview of how you can mix and match various financial products to achieve a well-balanced portfolio, for both short-term and long-term savings needs.
Discuss your investment strategy with your financial advisor to conclude whether your current strategy has a need for more savings-related or investor-related products.