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Summary of How to Invest for Short-Term Goals

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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

  1. Money Market Funds and Certificates of Deposit
  2. Ultrashort-Bond Funds and Short-Term Municipal Bond Funds
  3. Bank-Loan Funds

Find out what you have learned