Here is a snapshot of the rules of this game for suckers.
Put your savings in a bank, the way one was encouraged to do for generations by thrifty adults. Your savings will nowadays earn less than 1% interest and you will get a 1099 at the end of the year with this interest ‘income’ on it. This interest gets added to your taxable income and you will pay the same rate on it as you do on the rest of your income.
Keep your money in a diversified portfolio, as people who are more successful, or simply luckier economically, do, let a financial manager take care of the tricky details and earn an average, over time, of 7-10% annually. Leave the money grow, it will come in handy later on. The interest on this money will be taxed at a substantially lower rate than the rest of your income, if at all.
Game for suckers? That’s so harsh. As my father often reminded me, JFK famously said “life’s unfair.” Dig it.