What’s the difference between short and long-term investing?

   As you go through life, you’ll have short-term and long-tern financial goals.
   And you’ll need different investment strategies for each.
   So, for example, for a short-term goal such as saving for a down payment on a home, you’ll need to look for low-risk investments, because you’ll want to be pretty sure the money will be there when you need it.
   So, you might want to consider mutual funds consisting of short-term corporate or government bonds, certificates of deposit, money market accounts and U.S. Treasury securities.
   But when you’re saving and investing for a long-term goal, such as a retirement that may be far into the future, your chief goal is to accumulate as much money as you can.
   So, you’ll need a reasonable percentage of growth-oriented investments, such as stocks and stock-based mutual funds, in your IRA, 401(k) and other retirement accounts.
   The risk is greater than with short-term investments, but so is the reward potential.
   By choosing the right mix of short- and long-term investments, you can keep moving toward all your goals, whether they’re three years or three decades away.  
   This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.

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