Stop Saving for retirement. Start Investing for Retirement Instead.

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Saving money is never a bad thing, right? You take a percentage of your check every payday and tuck it away in a savings account. You’re doing what you’re supposed to, right?

Wellllllllll, kind of. Unfortunately, saving alone will never get you to retirement. You’re on the right track, but the money you’re stashing away isn’t growing like it could be. Not even close.

Let’s take a look at why this won’t work — and what you should do instead.

The Downside of Saving

To retire comfortably, you need to grow your money. You need to build wealth.

Saving money is all well and good, but it won’t really grow your money. That’s what investing is for.

Here’s the thing about savings: Let’s say you put your money in a savings account at a bank. According to the Federal Deposit Insurance Corporation (FDIC), the average interest rate on savings accounts is currently 0.05% APY, which is super low. Not that long ago, you could have found rates upwards of 3%, but those days are over.

And if you bank with a big national chain, your rate is probably even lower. The best-known brick-and-mortar banks often give you a measly 0.01% APY on savings accounts.

What does that mean? It means that if you deposit $100 into that savings account, you’ll earn one cent of interest per year.

That’s right — a penny. A penny.

You may as well shove your money under your mattress for all the good that’ll do you.

The Benefit of Investing

Now, let’s say you invest that money, instead.

Historically, investing in the stock market has yielded an average annual return of 7%, adjusted for inflation, according to the US Securities & Exchange Commission. Stock prices go up and down. But over time, they generally rise by 7% a year.

Let’s say you invest $100 in stocks. Instead of earning a penny after a year, you’d earn an average of $7.

Let’s think bigger. Let’s say you’ve got $1,000 saved up. After a year, a savings account would earn you $1,…

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