Short Term Investments - Which Are Best: Part 2

Good Short Term Investments

A money market is an example of one of the good short term investment options. Money markets have higher interest rates than traditional savings accounts, but they limit the access to the money for a period of time. During that time, the money is earning
accrued interest.

Investing in gold when the price is low, and then selling it when the price is high is another example of a short term investment. This works well because gold and silver both change quickly, and you can almost always find a time when the rate is low, and then hold onto your shares of gold or silver until the rate goes back up. Mutual funds also make great short term investments. The more money you invest in gold and silver, the less the swing in price has to be to allow you to make significant money.

Pros and Cons of Short Term Investments

There are pros and cons of short term, high yield investments. One of the cons is that the short term investments that carry high interest rates are often high risk type accounts. This means that you stand to lose money. To have less risk, you sacrifice your interest rate. Another con is that some types of short term investment options come with penalties should you need access to them early.

The pros of short term investments are that they allow you to make money for those expenses that you have right away. Unlike long term loans, you will have access to the money in a few short years. Not only that, but having short term investments actually works to protect your long term financial goals. This is because you have money available when you need it right away, rather than having to break into your IRA or other retirement fund early when an emergency occurs.

If you think you could benefit from looking into short term investment options, then talk to your financial advisor. This is the best way to find short term, high yield investments that can earn you money with the safest amount of risk. So no more excuses! Start working on your short term investments.