Short-term Investments Offer Liquidity – and More

 

October 20, 2021



Generally speaking, investing is a long-term process. You invest in your IRA and 401(k) to reach a long-term goal – retirement. You may invest in a 529 education savings plan for many years to reach another long-term goal – college for your children. But is there also a place in your portfolio for shorter-term investments?

In a word, yes. You have three good reasons for owning short-term investments: liquidity, diversification and protection of longer-term investments. Let’s look at all three:

Liquidity

For many people, the COVID-19 pandemic brought home the need to have ready access...



For access to this article please sign in or subscribe.

 
X

Reader Comments(0)

 
 

Powered by ROAR Online Publication Software from Lions Light Corporation
© Copyright 2023

Rendered 12/04/2023 05:21