{"id":1043,"date":"2010-08-02T19:17:48","date_gmt":"2010-08-03T02:17:48","guid":{"rendered":"https:\/\/maysfinancial.local\/"},"modified":"2017-02-26T02:02:02","modified_gmt":"2017-02-26T02:02:02","slug":"short-term-investments","status":"publish","type":"post","link":"https:\/\/maysfinancial.local\/articles\/short-term-investments\/","title":{"rendered":"Short-Term Investments"},"content":{"rendered":"<p><strong>Part of: <a href=\"https:\/\/maysfinancial.local\/investing\/investment-time-horizon\/\">Investment Time Horizon<\/a><\/strong><\/p>\n<h5><strong>Typical Characteristics of Short-Term Investments:<\/strong> Low Risk, High Liquidity, Low Return<\/h5>\n<h6><strong>Low Risk<\/strong><\/h6>\n<p>Risk is mitigated over longer periods of time. With short-term investments, we don&#8217;t have that kind of time. Therefore <strong>preservation of capital in short term investments is paramount.<\/strong> As individuals near retirement (or any other financial goal), they tend to <strong>revert to lower risk investments in an effort to prevent the loss of investment value.<!--more--><\/strong><\/p>\n<h6><strong>High Liquidity<\/strong><\/h6>\n<p>Liquidity is the <strong>ability to quickly convert assets into cash while simultaneously preserving value.<\/strong> This is the also the <strong>primary goal of short term investments. <\/strong>While short-term could be classified as anything from tomorrow out to a few years, the idea is the same. When you require the funds, they will be readily available without sacrificing their value.<\/p>\n<h6><strong>Low Return<\/strong><\/h6>\n<p><strong>Low risk, high liquidity investments tend to have lower returns.<\/strong> A lower return is the price you pay for such benefits. For low return investments, <strong>inflation is the primary concern.<\/strong> On average inflation is somewhere around 3% a year, though it can be significantly lower or higher. <strong>Some short term investments have returns lower than inflation, subsequently reducing the spending power of assets over time.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&#8217;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), [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3991,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[2,9],"tags":[94,96,111,163],"_links":{"self":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/1043"}],"collection":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/comments?post=1043"}],"version-history":[{"count":0,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/1043\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/media?parent=1043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/categories?post=1043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/tags?post=1043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}