Banking 1: Introduction, Banking 2: A Bank’s Income Statement, Banking 3: Fractional Reserve Banking.
[Read more…] about Banking Introduction, Income Statements and Fractional Reserve
Long-Term Investments
Part of: Investment Time Horizon
Typical Characteristics of Long-Term Investments: High Risk, Low Liquidity, High Return
High Risk
When it comes to some high risk investments (i.e. stocks), time has a way of neutralizing risk. This is why in 2008 some stock market investors were down over 35% while historically the stock market returns approximately 10% annually. It is acceptable for long-term investments to be high risk because over time probabilities determine performance. Remember, the market is cyclical. There are high and lows, peaks and valleys. These extremes are amplified in the short-term, but subdued in the long-term. [Read more…] about Long-Term Investments
Short-Term Investments
Part of: Investment Time Horizon
Typical Characteristics of Short-Term Investments: Low Risk, High Liquidity, Low Return
Low Risk
Risk is mitigated over longer periods of time. With short-term investments, we don’t have that kind of time. Therefore preservation of capital in short term investments is paramount. As individuals near retirement (or any other financial goal), they tend to revert to lower risk investments in an effort to prevent the loss of investment value. [Read more…] about Short-Term Investments
What is Investment Time Horizon?
Part of: Investment Time Horizon
What is the difference between long and short-term investments? Time horizon is critical when it comes to investment choice. The desirability of characteristics and features depends on the term. Before choosing an investment, you should be aware of these details.
Investment time horizons are either contractual or non-contractual. [Read more…] about What is Investment Time Horizon?
Understanding Investment Time Horizons
Thinking about investing? When starting to invest you’ll need to establish your goals, assess your risk tolerance and decide on your investment time horizon. Your investment time horizon will often depend on your investment goals. It’s critical to choose investment vehicles that fit your appropriate investment term. Check out the articles below to learn more about investment time horizons.
What is Investment Time Horizon?
A brief introduction to investment time horizons.
Short-Term Investments
Characteristics of short-term investments.
Long-Term Investments
Characteristics of long-term investments.
Introduction to Investing
From Wall Street to commodities, from derivatives to mutual funds, from currency to precious metals and minerals, from picking stocks to collecting baseball cards. The topic of investing is vast and widely applicable.
The concepts behind investing apply all areas of financial planning. A solid understanding of investing pays dividends. Remember that the same principle that applies to saving for retirement and education applies to all other kinds of investing: it’s the “time in” not the timing that is important.
The sooner you begin, the less you will have to ultimately contribute in to achieve your goals. The longer that compounding is able to work for you, the more you’ll have down the road per dollar invested. Gains become exponential.
