As you go through life, you will likely have long- and short-term financial goals.
But you may need different strategies to meet these different goals.
To meet a long-term goal of a comfortable retirement, you may want to invest in tax-advantaged retirement accounts, such as an IRA and a 401(k).
But for shorter-term goals, such as a family vacation or home renovation, you’ll want to use accounts and investment vehicles that not only align with your risk tolerance and time horizon but also provide you with the desired amount of money when you need it.
If you aren’t able to save enough to meet your short-term goals, you could borrow the money through a credit card or loan, or you could sell some of your investments.
In making this choice, you’ll need to weigh several factors.
For example, is the interest rate on a loan going to be higher than what you could earn on your investments?
Or if you sell investments, could you incur taxes and other expenses?
By carefully evaluating your options when it comes to short-term goals, you can make choices that align with your needs.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.
