Paddock Financial Planning

Saving and investing are important parts of your financial plan – but they are different!

Saving is the process of setting aside money to be used for a financial goal – think establishing an emergency fund, accumulating for retirement, or buying a house.

Investing is what we do with the money you've saved, and there are lots of options.

Some investments are designed to help you protect your principal (the initial amount you set aside), but may provide little to no return.

Other investments can go up or down in value and may or may not pay interest or dividends. Stocks, bonds, cash alternatives, and real estate all represent investments.

Why is investing important? The future is expensive. People live longer, retirement costs are higher, groceries, gas, inflation…the list goes on and on. The value of a dollar today is less than the value of a dollar 10 years from now.

Because everyone has different goals and expectations, it's important to work with a financial planner to match YOUR goals to appropriate investments.

To recap:

Step 1 – Save! If you don't, there's no money to invest.
Step 2 – Invest! Work with a financial planner to match your goals to your investments.