#8
Investing Money You Need Soon
S&P range: -37% to +54% in a year. Need money in <2 years? HYSA. >5 years? Stocks.
Investing short-term cash in stocks risks locking in losses during a downturn, since annual returns range from -37% to +54%, whereas money needed within 1-2 years earns a safe 5% APY in a high-yield savings account (2026 rates). Rule: stocks for 5+ years, bonds for 3-5, cash for 1-2. Beginners tempted to chase stock gains often sell at the worst time when needing cash.
Photos (1)
Comments on "Investing Money You Need Soon"
Have a take on this ranking?
Comments are how the argument actually happens here. Posting one needs a free account — it takes about a minute.
No comments yet.
The first comment sets the terms of the argument.