Making Money Short and Long Term Investing Tips

The potential to make money in investments is enormous. There exists a myriad of investment options. Among those options are viable strategies for the short and long term.

If you suspect that you will or may need those funds within a few years you it is best to stick with liquid, safe investments. These short term investments are easily found at a bank. Bank savings accounts, money markets, and short term CD’s are a staple of short term investments. Here’s a few points to remember:

1. Shop around. Rate is important and can vary widely by bank, but it shouldn’t be your only consideration. Issues like convenience and the friendliness of the staff and their helpfulness are all important to consider.

2. Pay close attention to any fees associated with these accounts. These can also vary widely and are usually the result of an action on your part. If you think, for example, that you will need to access that money during the term of the CD then you are probably better in the money market.

3. Take advantage of any perks that come from investing your money. Might as well get that free checking account with that CD. It rewards the bank for winning your business and often will qualify you for better rates.

If you are confident about a longer term consider an annuity, depending on your age. A fixed annuity will run about five to seven years and has several advantages over a CD.

Finally, if a long term investment seems appropriate for you consider riskier investments with the potential for higher returns. This includes stocks, bonds, mutual funds, ETF, Real Estate, and many other investments. Consider the following:

1. Deal with a reputable investment consultant. Referrals from friends is a good place to start. Good advise can save you a lot of headaches.

2. Discuss all of the account details. Including fees, hypothetical returns, investment history, and why the adviser chose one investment over the other.

3. Once you’ve chosen a plan stick with it. Long term investments have the potential to earn so much more than short term investments because they can wait out market fluctuations. Constantly changing investment direction destroys this advantage.

4. Finally, keep an eye on your investment. You should know how your account is doing at all times, but don’t panic at the occasional dips in your portfolio.

It is possible to earn money in both short and long term investments. Follow these few tips to get you started on the road to building wealth. The benefits of meeting with an adviser can not be stressed enough, every situation is different.