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Savings Can Often Involve More Than a Bank Account

When people think of savings, they often think of savings accounts and putting money in a deposit at the local bank office. However, there is more to saving than just a basic savings account. Here are 10 things to know about savings in general:

  1. Savings in a bank is insured by the federal government up to $250,000 per account.
  2. Savings can be deposited in a basic bank account as well as a certificate of deposit or a government bond, all of which are protected.
  3. Savings can be generated by reducing personal spending as well as earning more income.
  4. Prevention can generate savings in avoided costs in the future.
  5. Savings can be stored in financial assets as well as physical assets.
  6. Interest can be generated from growth of savings, which can then be taxable.
  7. People on average don’t save near enough for retirement.
  8. Potential savings don’t count unless they actually manifest into real cash or gain or cost avoidance.
  9. Savings can be put into investments, such as stocks or funds, but they aren’t protected from loss of value tied to the market.
  10. The biggest savings people on average work towards involves buying a home.

Pierce Insurance Group also understands insurance can help people save from unexpected costs in life. Give them a call to learn how.