Investments/Saving?

[Goldy1]

The problem is that you don't always know when you will need the cash. Will it be 5 years or 10 years? Well how is my roof going to hold up? WEll, is a pink slip around te way? You don't quite know. You have to plan for a job hunt taking longer etc. and if ytou are really cautious, you willl need a lot of liquid cash.
I moved some money into my roth and keep it in something like a money market fund so I don't have to pay taxes on the interest which I did in the bank. I could only put the max allowed though which was only a fraction of my account. I want the money out of stocks in case I need it, but I probably won't need it soon so it is there tax deferred for now.

[Alex_Adviser]

Savings and investment both are means of achieving financial security for the present as well as for the future. The difference between savings and investment is caused by the factor of risk. In savings, the risk factor is almost absent but in investment the risk factor is always involved with the money.

Savings can be termed as money that is saved through a bank or any other financial organization that provides the facility. This savings is done for a long period but the growth rate of money is very low. On the other hand, investment provides the growth opportunity to the money.