From Yahoo Finance: 2025-04-28 13:32:00

Short-term investing goals, like buying a house or funding a wedding, require a different approach than long-term retirement savings. Don’t neglect saving for retirement, as compounding over time can significantly impact long-term outcomes. Consider balancing funding for short and long-term goals by utilizing different account types like Roth IRAs.

Investors often make the mistake of either taking on too much risk or not enough when investing for short-term goals. While stocks have historically outperformed other asset classes over the long term, they may not be the best choice for short-term investments. Guaranteed products like CDs or money market accounts may not be ideal due to inflation eating into savings.

Short-term investment portfolios should focus on outpacing inflation while preserving capital, rather than maximizing growth. Model portfolios typically consist of cash, shorter-term bonds, and a small allocation to stocks for growth potential. The majority of investments for short-term goals should be in safer, lower-returning assets.



Read more at Yahoo Finance: How to save for short-term goals while keeping long-term ones in mind