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Money Minute
Quick Tips
Investing and Timeframe Considerations
Money Minute
When deciding where and how to invest, be sure to consider how long you plan to keep your money invested.

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.

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