Savings is Important
What is Savings? What is Investing?
- Savings- Proportion of income not spent on consumption. Savings are more liquid than investing. This means that savings can be more easily converted to cash.
- Investing- The purchase of assets with the goal of increasing future income. in order for an investment to become as liquid as savings, usually there will have to be a longer wait period from when the money is first invested. This means that investments cannot be used in the case of an emergency.
Why Would I Need a Savings Plan?
- Savings is what you will have to reach into if you ever have an emergency.
- It also helps you to be able to pay for more expensive items such as a vacation.
PNC Bank: Individual Retirement Acoounts (IRAs)
- Great tool to help fund retirement.
- They hold potential tax advantages.
- Withdraws before the age of 59 1/2 are subject to penalties.
- Deposits can be made at any time with the IRA Money Market