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28 - Investing Controllables Part 11 - Navigating Short-Term Goals

28 - Investing Controllables Part 11 - Navigating Short-Term Goals

March 31, 2023

Ideal For: Forward-Thinking Investors with a Lump-Sum Goal within Three Years

Unpacking The Strategy: Short-term investing is a tailored strategy to meet lump-sum financial goals within a three-year horizon. It's designed with the primary focus on stability rather than the potential for high returns.

Who Stands To Gain? If you have a specific monetary goal on a timeline no longer than three years, this strategy is poised for you.

Why Should You Care? Goals with a shorter time frame demand distinct strategies compared to long-term ones. In the realm of short-term investing, the emphasis shifts from chasing potential returns to safeguarding your capital. Riskier, volatile investments might not deliver the stability required for such shorter-term goals.

Your Next Move: Consider reliable investments like savings accounts or money market funds, which are typically low-risk and offer stable returns. Alternatively, you can employ laddered maturities of short-term investment vehicles like CDs, short-term bonds, or defined-maturity bond ETFs. Remember, when it comes to short-term investing, prudence and capital preservation often overshadow the allure of high returns.