
Summary of How to Invest for Short-Term Goals
Summary of How to Invest for Short-Term Goals
Short-term goals generally call for bonds and money market investments because the alternative—equity investments—have more danger of loss. And that’s the last thing you need when saving for a goal you want to fulfill within a few years.
Some investors do use equities such as stocks and mutual funds for short-term goals, but that is usually the exception. For safety’s sake, most investors stick with bonds.
What You Have Learned
- Money Market Funds and Certificates of Deposit
- Ultrashort-Bond Funds and Short-Term Municipal Bond Funds
- Bank-Loan Funds