Saving vs Investing – Let your money work for you!

It would be difficult to achieve one’s financial goals by placing cash assets solely into a traditional savings account and expect it to grow. It would be similar to watching paint dry, or grass grow. Actually, the latter comparisons would probably come to fruition at a much faster pace.

So then, why are we inclined to place or savings or excess cash in traditional Savings accounts? Well there are a host of reasons including, but not limited to, access to immediate cash needs, our quest for financial security, and allocation of our disposable income as a method of planning ahead for anticipated expenses.

For successive generations of Trinbagonians, the conventional method of saving has been via monthly deposits into low interest bearing savings accounts. Taking into consideration incurred fees, low yields and inflation – savings accounts can actually achieve the opposite desired effect, as principal balances are stagnant or depleted.

When faced with any choice, one always incurs an opportunity cost. In the current market, choosing Savings over Investing not only incurs the cost of saving, but it forgoes the opportunity to let our hard-earned money work for us. Investing dedicates that capital towards a desired goal with the expectation of obtaining additional income or profit.

So how do we decide on which is the right investment for us? The eminent investor guru of our generation: Warren Buffet, in an address to Berkshire Hathway shareholders once answered that by saying, “The market may go up, the market may go down, the economy may fluctuate, but there will always be intelligent things to do.” At Guardian Asset Management and Investment Services, we pride ourselves in acting in the best interest of our shareholders and clients, by assisting them with achieving their financial goals, despite the prevailing market conditions.

Guardian Asset Management focuses on our client’s objectives, and offers the opportunity to achieve lifestyle goals such as investing towards retirement, childrens’ education or the acquisition of a home through our unique suite of mutual funds that include: income funds, equity funds and investment plans.

Our evaluation of our clients’ needs and wants allows us to tailor a portfolio that offers easy investing into transparent solutions, which deliver and perform consistently, with a keen eye on risk management, while preserving our clients’ wealth.

Understanding our client’s risk tolerance is a primary indicator in our approach to investing. In a recessionary period, with a volatile economy and unsettled job market, savings is a means of planning ahead for risks such as unanticipated job loss, out of pocket costs for medical emergencies – or as we have experienced at home and by our Caribbean neighbours - recovery from adverse weather conditions and natural disasters. Our experience and confidence in our products, backed up by the historic performance of these innovative investment solutions, ensures that our client’s goals are realistically achieved.

An investment cliché that the least sophisticated investor amongst us would be familiar with is, “buy low, sell high”. During recessionary periods, experienced and potential investors with capital are often times presented with opportunities to acquire assets at a fraction of their values. Guardian Asset Management’s access to local, regional and international capital markets, offers our clients personalized customer service that allows participation and investment opportunities in these markets, while their portfolios are managed by a specialized team of locally based experts.

In what can oftentimes be a daunting world of investment jargon, converting your savings to investments should not be made difficult or complicated. Ease of access and monitoring of your assets performance should always be within your grasp, and with Guardian Asset Management’s array of services, investing and letting your money work for you, has never been more straightforward nor easier. A world of investment opportunities awaits – embrace it!


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