People generally set aside a portion of their monthly earnings, which they either invest in their children’s education or retirement plans. Such events occur at different times of their lives and so it is necessary to plan these events at different timeframe. A short-term investment strategy within the framework of well-diversified long-term investment plan is essential in dealing with your financial needs. This is the reason why many investors seek the expert advice of the specialists at Foster Financial Services Inc. when it comes to choose an appropriate short-term investment plan.
The time-period for short-term investments can be from several months to several years. However, most short-term investments are generally for a period of three years. Depending on which investment scheme you put your money in, short-term investments can be either low-yield or high-risk. However, the financial specialists at Foster Financial Services Inc. state that they are a vital way of generating more profits from your liquid assets or cash savings.
Regardless of whether you intend to establish a franchise business or save to pay for down payment on your dream home, you need to invest in a short-term investment plan. It is the most prudent way of generating maximum returns within a short period with the least amount of risk. It is easy to convert a short-term investment into cash or any other short-term or long-term investment.
The financial experts at Foster Financial Services Inc. explain that within an investor’s investment portfolio, short-term investments protect their long-term investments. People who invest their money in stocks and real estate will have a high yield provide they keep their money for an extended period. However, the problem arises when you need instant cash in the event of a financial emergency. Without any kind of buffer, you may have to liquidate your long-term investments at a loss.
The ideal solution is to invest in short-term investments, which are easy to liquidate in the event of a financial emergency. The specialists of Foster Financial Services Inc. emphasize liquid cash is the best buffer but it offers no interest. Saving accounts are slightly better but their interests are low. Investing in short-term investments is the best way to generate more profits from your assets that you need to keep in liquid form.
The experts at Foster Financial Services Inc. state that it essential for you to invest according to different events that occur in your life. As these events happen at different times, you need to invest in an appropriate investment plan for each of these events. In any investment plan that you formulate, you will need to know how much money you will need and when you will need the money.
The professional Foster Financial Services Inc. explains to their clients that they need to ask themselves the following questions:
- How are your immediate financial goals?
- How much money do you need to invest?
- How long can you wait for this money?
- Can you afford to lose any investment?
The professionals of Foster Financial Services Inc. advise their clients to invest their money market mutual funds. The yield from such investments will be lower than long-term investments but they can access their money when they need to.