Investing is generally agreed upon as a staple for building wealth. But for it to dovetail with your personal financial goals, there is more finesse required than simply picking a promising opportunity to put your money into.
Alongside your tolerance for taking on risk, another major consideration when investing is what is known as your time horizon, or the amount of time in which “you will need to access your money,” said Investopedia. If you are like most people, you probably have a mix of goals coming up sooner, such as a planned home improvement project, in addition to those that are a while down the road, like saving for eventual retirement. While investing can be key to meeting both of these aims, the approach you take will likely be different.
Why does your timeline matter when investing?
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What are examples of short-term investments?
How might you invest for the long-term?
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