Short-Term Investments Versus Long-Term Investments

To understand the difference between short term investments and Lon therm investments we gotta talk about interest rates and the investment returns.  Because they play a huge part in this understanding between short term investments and long therm investments. 

Letting your money grow through the interest-bearing accounts is pretty much a low risk action. Here you go into an agreement knowing how much interest you will be able to earn over a preset period of time.

But investing in stocks is something different because it is far from certain and it is very risky but also very fun at the same time. If the market sings it can stay at the very low for months and it can take may months or even years for the market to go back to the point it was at before it sank. And it means that it can take years for you to get your money back.

This means that high returns normally require a willingness from you to take on more risk on your shoulders. And the low returns have less risk and are more comfortable if you don’t want to have a lots of stress in your life. 

You Can Find My Investing Portfolio Here

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