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Investing ABCs

Professional guidance can be vital when planning for one’s financial future. (Photos by Melissa Emory)

Like exercising and eating broccoli, investing is something we are all supposed to do.

But where to start?

Understanding a few ideas and common terms can make it easier to talk with a professional and begin.

The Ba$ics What is saving, and what is investing? Both involve putting away money, but the difference is the amount of time involved.

Adam Tatroe, a financial advisor with BMO Harris Bank in Crystal Lake, McHenry and Marengo, defines savings as money set aside for specific, short-term goals — goals to be met between one and five years.

“These are situations where there’s a guarantee that on a certain date, the money is going to be there,” Tatroe says.

Common short-term goals are car purchases, weddings, vacations and home purchase down payments.

Bank savings accounts, money market accounts, vacation or Christmas club accounts are tools to help reach short-term savings goals.

Tatroe suggests people open an account earmarked for a specific goal and then use automatic withdrawls from their checking account to fund it.

To read the full story, pick up the latest issue of McHenry County Magazine.