{"id":1990,"date":"2017-07-14T15:50:32","date_gmt":"2017-07-14T13:50:32","guid":{"rendered":"https:\/\/my-life.lu\/?p=1990\/"},"modified":"2023-02-22T08:46:04","modified_gmt":"2023-02-22T07:46:04","slug":"save-or-invest-what-to-choose-30002","status":"publish","type":"post","link":"https:\/\/my-life.lu\/en\/save-or-invest-what-to-choose-30002\/","title":{"rendered":"Save or invest: what to choose?"},"content":{"rendered":"
\n\t\n\t<\/iframe>\n<\/div>\n

Whether you manage to save a little each month or already have considerable wealth, the question remains: where to put your money? With savings bearing virtually no interest and markets often unpredictable, it is becoming harder and harder to know what to do.<\/p>\n

In theory, savings are safer, while investing returns more over the long term, but may carry high risks. In addition to this rule of thumb, there are few more factors to consider before choosing one option or another. Here is a quick comparison of the main criteria to take into account.<\/p>\n

\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t
CRITERIA<\/th>SAVE<\/th>INVEST<\/th>\n<\/tr>\n<\/thead>\n
What is the approach used?<\/strong><\/td>All good things come to those who wait (security).<\/td>Fortune favours the bold (risk + reward).<\/td>\n<\/tr>\n
What are the objectives?<\/strong><\/td>Better suited to building up a capital reserve in order to face
\nmajor contingencies or fund a medium-term project.<\/td>		Better suited to diversifying and growing spare cash more quickly over the long term,
\nor setting more money aside for retirement.<\/td>\n<\/tr>\n
When?<\/strong><\/td>The sooner the better. It is always useful to have some money put to one side.<\/td>It's up to you, but make sure your investor profile is always suited to your circumstances
\n(e.g. be more conservative for retirement).<\/td>\n<\/tr>\n
What is the investment horizon?<\/strong><\/td>From very short term to long term.<\/td>Medium or long term (short term is possible, but is strongly discouraged for the inexperienced).<\/td>\n<\/tr>\n
What are the risks and rewards?<\/strong><\/td>From low to limited.<\/td>From medium to very (very, very) high, with no guarantee of results.<\/td>\n<\/tr>\n
How much expertise and time are needed?<\/strong><\/td>Little, if any.<\/td>High, especially without professional support.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Looking at this table, it is clear that savings and investments<\/a><\/strong><\/span> serve different but often complementary purposes. So the question is not which one to choose, but what weighting to give each component in line with your plans and needs. This is where your banker<\/strong><\/span><\/a> comes in.<\/p>\n

As a rough guide, we can use a three-level pyramid to show the relationship between savings and investment.<\/p>\n