Accumulating Funds for Short-Term Goals

Posted on 10-15-2020

Saving for Short-term Goals can require a Conservative Approach

This week, Craig Siminski, of CMS Retirement Income Planning, shares an article exploring some guidelines and potential investment vehicles:

Stock market volatility in 2020 has clearly reinforced at least one important investing principle: Short-term goals typically require a conservative investment approach.

So how should you strive to accumulate funds for a short-term goal, such as a wedding or a down payment on a home? First, you’ll need to define short term and then select appropriate vehicles for your money.

Investing time periods are usually expressed in general terms. Long term is typically considered 15 years or longer, mid term is between five and 15 years, and short term is generally five or fewer years.

The basic guidelines of investing apply to short-term goals just as they do for longer-term goals. When determining your investment mix, three factors come into play — your goals, time horizon, and risk tolerance.

While all three factors are important, your risk tolerance — or ability to withstand losses while pursuing your goals — may warrant…

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Craig Siminski is a CERTIFIED FINANCIAL PLANNER™ professional, with more than 22 years of experience. His goal is to provide families, business owners, and their employees with assistance in building their financial freedom.

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