For newer investors, the stock market can be exciting, but before you open an account, make sure you consider your timeline.
If you have a short timeframe, for example if you plan to access your money within a year or two, then you want to be cautious about the stock market. Remember, the stock market moves up and down every day, so if there’s an unexpected downturn, you may be in a tough situation right when you need the money. Instead, for short-term goals, many people consider more conservative options such as savings accounts and CDs. They aren’t as exciting, but that’s the point – they’re generally more stable.
If you have a long time-horizon, the stock market might be worth consideration. Even if there’s a temporary downturn, there’s time to ride that out when you don’t plan to touch that money for years down the road.
When it comes to saving and investing, there are many options. Just make sure you consider your time horizon when making your decisions.
The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.