When having conversations about money, I often get questions that sound something like this: "Jake, I’ve saved up $1,000. Where should I invest it to get the best return?” My tendency is to go into full financial advisor mode and ask about their goals, try to understand risk preferences, and discuss diversification and investing strategy. However, I think the most appropriate response would be something along the lines of:
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Saving vs. Investing
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When having conversations about money, I often get questions that sound something like this: "Jake, I’ve saved up $1,000. Where should I invest it to get the best return?” My tendency is to go into full financial advisor mode and ask about their goals, try to understand risk preferences, and discuss diversification and investing strategy. However, I think the most appropriate response would be something along the lines of: