Explore Education Center
Financial Tips
Smart ways to manage your money
Investing Basics
What you need to know to get started
Planning for Retirement
Tools to plan for your future
Saving for Education
Be ready when they’re ready
Recommended Reading
Our top picks
Sprint or stroll, depending on your goals

Different investors have different goals. For short-term goals, like preservation of principal, use short-term investments, such as savings accounts and money market funds. With these investments, the risk of losing your money is low, but the rewards are lower as well.

Please enable the flash plugin.
 

Use long-term investments for long-term goals, such as saving for retirement. Stocks, for example,—and the mutual funds that invest in them—are considered long-term investments. Their value will go up and down in the short run, and while they carry more risk, they also have a history of providing higher returns over time.

In the real world, investors have both short and long-term goals. That’s why choosing a variety of investment options can help you meet your various goals while lowering your risk exposure. This process is called diversification, and it can help you in your race to financial security.

> Click here to return to the main Money Minute page

 

Past performance does not guarantee future results. © Ariel Investments, LLC. The mutual funds offered by Ariel Investment Trust are distributed by Ariel Distributors, LLC. Use of this website is subject to our Terms & Conditions of use. Each of the investment products, mutual funds or services referred to in this site may be offered only to persons in the United States. This web site should not be considered a solicitation or offering of any investment products, funds or services to investors outside the United States. Original illustrations © Omar Rayyan 2007.