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  1. Jessica Williams says

    So why would you give a title to an article about short-term investing, when what you are really talking about is saving money. Money meant for down payments, college, vacations, etc. should not be invested. These are savings goals.

    • Jon says

      It’s semantics but saving and investing are two different things. Yes – down payments, college, vacations – are all savings goals. But, what you do with that money while you’re saving it is called investing. Whether you put the money inside a savings account (yes, a savings account is a type of investment), CDs, stocks, bonds, or a mattress depends on your risk aversion and time horizon. As I said in the article – short term investments preserve capital – meaning you shouldn’t take a ton of risk. When your time horizon is five years or less, you should stick with the lower risk, short term investments I listed.

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