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Financial
What’s the Difference Between Short
and Long-term Investing?
Ron Francis III worry about trying to find a possible. And since you have based mutual funds. It’s true
Financial Advisor market for your investment so many years until you need that stocks are volatile, with
Edward Jones when it’s time to sell it and this money, you may be able sometimes sharp price declines.
Investments
Inverness, Fl then use the proceeds for your to take on more risk than you But in exchange, you get far
Ron.Francis@ short-term goal. That’s why could with the investments you greater growth potential than
edwardjones.com you need to pick short-term counted on for your short-term you would with any of the
As you go through life, you’ll vehicles that are highly liquid. needs. This isn’t to say you short-term investments named
above. Furthermore, the longer
have many financial goals. So, what kinds of investments should be reckless, of course –
Fortunately, you don’t need to meet these criteria? You have you still need to pay attention to you hold stocks or stock-based
investments, the more the
achieve them all at the same quite a choice, including mutual your individual risk tolerance.
time. But when you have a mix funds consisting of short-term Overall, though, there’s a big price volatility tends to even
out. (Keep in mind, though,
of short- and long-term goals, corporate or government philosophical difference, in that there are no guarantees of
you will need to pursue some bonds; certificates of deposit; terms of risk capacity, between profit.)
different investment strategies cash management accounts; investing for the long term
simultaneously. money market accounts; and versus the short term. A financial professional can
U.S. Treasury securities. When you’re saving for a long- help you choose the ones that
Your short-term goals may can help you keep moving
depend somewhat on your Moving on to longer-term term goal such as retirement, toward all your goals, whether
stage in life. For example, when goals, the situation can be you may need to rely primarily they’re three years or three
you’re starting out with your quite a bit different. Suppose, on your IRA and your 401(k) decades away.
career and you’re beginning for instance, you’re saving and or similar employer-sponsored
to raise a family, you may well investing for a retirement that retirement plan. And within This article was written by
have a goal of saving enough may be three or four decades these accounts, you’ll need Edward Jones for use by your
money for a down payment on away. For this goal, you have a reasonable percentage of local Edward Jones Financial
a home. Later, though, you may one overriding motivation: to growth-oriented investments Advisor.
decide you want to travel the end up with as much money as such as stocks and stock- Edward Jones, Member SIPC
world for a year.
Because you know about how
much money you’ll need,
and when you’ll need it, you
can choose the appropriate
investments, with these
characteristics:
• Low risk – Above all else,
you want the right amount
of money to be there when
it’s time to use it. So, you’ll
need low-risk, high-stability
investments. You won’t
see much in the way of
growth from these types of
investments, but you also Ron Francis III edwardjones.com
won’t be sweating every single Financial Advisor Member SIPC
market downturn in fear of 2619 E Gulf To Lake Hwy #A2
not reaching your goal. Inverness, FL 34453-3216
352-341-0579
• Liquidity – You won’t want to IRT-1948H-A
