A savings account is the safest place to put money. It's also good for money that you expect to spend within a year or so.
But the rate of return is nothing like investing for the long-term in a 401(k). While such retirement accounts are subject to the whims of the market, going up and down in value, over the long-term they win big.
Simple example on $1,000: After a year, it may earn $1.20 in a savings account. During a good stock market year, the same $1,000 could earn $140.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.
