What Are Short Term Investments and How Do You Pick Them?- Episode 34

One of the most important things that CAPitalizers learn early on is that short-term financial needs must be matched to short-term financial assets.  If you need your money to be there for you tomorrow, next month, or next year, you want it exposed to as little risk as possible.

Short-term investments are designed to trade rate of return for relative safety.  But what exactly is a short-term investment?  And how do you decide which one may be suitable for you?

Savings accounts, Money Markets, CDs, bonds — these are just some of the many choices you have in the short term. Learn more about how they work and how to choose among them on this week’s edition of CAPitalize Your Finances!

Important Information:

The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances.

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal.

No client or prospective client should assume that the presentation (or any component thereof) serves as the receipt of, or a substitute for, personalized advice from Lucia Capital Group or from any other investment professional.

Money market mutual funds, though traditionally lacking federal insurance and not without risk, are highly regulated under federal law.

CDs are FDIC insured up to $250,000 per depositor, per insured bank, for each account ownership category.

It is important to keep in mind that investments in fixed income products are subject to liquidity (or market) risk, interest rate risk financial risk, inflation risk and special tax liabilities. Interest may be subject to the alternative minimum tax.

Christopher Panagiotu is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name CAPitalize Your Finances, a separate entity from LPL Financial. LPL 1-05265357 (4/22)

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