Investing in something that you believe would grow eventually and will help you financially is a very healthy mindset especially if you are still at a young age. People can choose in different types of investments in the market right now and everything is at an all-time high, and maybe at some point of your future, that might be your key to financial success.
For a young investor like you who wants to see a good improvement of your portfolio, this is the perfect time to venture into short-term investment options, these are the investments that usually do not see the growth for long-term investments, however, it can be specifically design and function as a safe investment involving only a small amount of finance and time in mind.
However, according to the investment managers Australia, majority of young people nowadays are not that experienced when it comes to dealing with the stock market, while there are constant recessions happening around the world, a lot of these young people are noticing how their net worth’s growth which encourages them to invest into something even with uncertainty, but still there are still a lot of sense to invest in short-term investments.
To give you a great idea what kind of investment you should be having right now, here are some of the best short-term investments to Invest with intelligence for a young individual like you.
- Online checking and savings account- This kind of investment is a good short-term investment for many reasons. First, it has a higher interest rate compared to conventional accounts, while it is also completely safe since this account is insured, third, you have full access to your money anytime and you are not worried about losing interest for using the money.
- Money market accounts- This type of investment is an online savings account that has a particular exception. This type of account is not insured, and as a result, you earn a big bigger interest rate compared to the one listed above. This type of account usually has account minimums that you should be considering before investing knowing that you earn hefty interest rates.
- Certificate of deposits- When it comes to stashing money, this is probably one of the best out there as a short-term investment. Certificate of Deposits are bank products that require to store the money in the account for the term listed depending on the period of time which lasts three months to even half a decade, and in return, locking your money for that period of time, the bank will be paying you generous interest rate compared to other types of accounts.
- Short-term bond funds- Investment products are one of the best ways to invest your money in just like short-term bond fund which usually matures rapidly within a year, and it is safe from interest rate hikes and happenings in the stock market. Its main advantage is it has a lesser movement in price compared to longer maturity bonds.
- Treasury inflation-protected securities (TIPS)- this is a type of government bond that merits its own part, while this is specially designed bonds that easily adjust during an inflation making it very ideal for short-term investments and long-term investments because it automatically brings an increased the payout in interest-based with the current rate of inflation, so when the bond’s interest rises, so does your payout for it.