Saving Power vs. Growth Power: Are You Making the Best Moves?

When it comes to financial security, finding the balance between saving power and growth power can make all the difference.?

Saving power is about building a foundation—having an emergency fund, reducing debt, and setting aside cash for short-term goals. Growth power, on the other hand, is where your money works for you, growing through investments over time.?

Are you making the right moves for your wealth-building goals? Consider how you’re tackling both of these:

Assessing your Financial Base

Your financial base is what protects you from life’s unexpected turns. Start with a strong emergency fund that covers 3-6 months of expenses in a high-yield savings account, and prioritize paying down high-interest debt.?

At EFS, we work with strategies like buffer assets as an addition to your savings portfolio. They’re tax-efficient resources that can be drawn on for unplanned expenses. This approach helps you manage unexpected financial needs without touching long-term investments, keeping your growth power intact.

Maximizing Growth Power

Once your base is solid, it’s time to go on offense with growth power. This is accomplished with investments to help your money work harder.?

Enhanced Pensions (EPs) are one of the EFS strategies designed to give you more control over your retirement savings. They’re structured to maximize growth potential while offering flexibility that traditional pensions may not provide, making them a powerful tool for building long-term wealth.

At EFS, we also emphasize the role of efficient tax strategies (ETA) in maximizing your growth power. These strategies help minimize the impact of taxes on your investments, which can make a big difference over time.?

Combining these tools with a diversified portfolio of assets like stocks, bonds, and real estate, positions you to grow wealth steadily and sustainably.

Finding the Right Mix

Balancing saving and growth depends on your goals, stage of life, and comfort with risk. If you’re starting out, focus more on saving and debt reduction. If you’re in a stable financial place, enhanced pensions and tax-efficient investments can help maximize growth.?

Life changes happen, so it’s smart to check in regularly and make adjustments as needed; even small shifts can have a big impact.

Two Actionable Tips:

• Create a Safety Net: Establish an emergency fund and use buffer assets to cover unexpected expenses. It keeps your foundation stable and growth on track.
• Invest with Efficiency: Consider growth tools like enhanced pensions and ETA to maximize your long-term gains and reduce tax burdens over time.

We work with your CPAs and Financial Advisors to suggest customized additions to client portfolios based on things like saving and growth power.

Mastering both saving and growth power with EFS’s strategies sets you up for a financially secure future. Whether you’re an individual or a financial professional, myself and my team focus on collaborating to find the right balance. Questions? Please reach out: [email protected] or call 773-318-9608.

______________________________________________________________________

Jeff Faine is the Founder of EFS Life, a firm dedicated to enhancing lives through tax savings and efficient distribution vehicles. He is a husband, father of two, former NFL Offensive Lineman and Notre Dame Alumnus. He is also the Co-Founder of The Faine House, an organization providing safe housing, mental health support and life skills programming for teens aging out of foster care.?