If you’re looking to invest money for the short term, you’re probably searching for a safe place to stash cash before you need to access it in the not-so-distant future. The volatile markets and slumping economy led many investors to hold cash as the coronavirus crisis dragged on — and things remain uncertain as the economy now faces surging inflation. The Russian-Ukraine war and its corresponding increase in inflation and negative impact on the local economy mean that you need to save and invest whatever little for the challenging times ahead.

Short-term investments minimize risk, but at the cost of potentially higher returns available in the best long-term investments. As a result, you’ll ensure that you have cash when you need it, instead of squandering the money on a potentially risky investment. So the most important thing investors should be looking for in a short-term investment is safety.

The safety of short-term investments comes at a cost. You likely won’t be able to earn as much in a short-term investment as you would in a long-term investment. If you invest for the short term, you’ll be limited to certain types of investments and shouldn’t buy riskier assets such as stocks and stock funds. (But if you can invest for the long term, here’s how to buy stocks.)

If you’re making a short-term investment, you’re often doing so because you need to have the money at a certain time. If you’re saving for a down payment on a house or a funeral, school fees, buying a vehicle, or simply saving up for capital to start up a business, for example, the money must be at the ready. Short-term investments are those you make for less than three years. A high return is what every investor is after, but it’s not the only factor that matters. When reviewing investments, professionals look not only at absolute return potential but also at something called “risk-adjusted return.” The bottom line is that not all returns are created equal, and smart investors look to invest where they’re getting the best value for the risk that they are taking on — even if that means accepting lower returns.

By opening an account with us and making deposits, you can start the process to make the most important decision in your life. The best decision of all decisions you have ever made. You may apply online, or simply give us a call to start a simple application process. Your savings can also serve as collateral for a future loan you may need from us. That’s a win-win! Call us now.