Investing 101 – How to Maximize Your Investing Time Horizon

Investing involves taking some of your money and putting it to work in order to achieve financial goals, like buying a home or funding retirement. When and where you invest depends on many factors, including your financial situation, investment goals, the amount of risk you’re willing to take, and your investing time horizon. Source theinvestorscentre.co.uk

Generally, the more time you have before you need the money you’re saving, the better opportunity you’ll have to make investments that earn higher rates of return. That’s because the longer you hold your investment, the more chance your returns have to recover from dips caused by short-term market volatility.

The Future of Cryptocurrency: Should You Invest Now

One way to minimize your exposure to risk is to diversify your investments. That means spreading your money among different asset categories, such as stocks and bonds. This helps ensure that even if one type of investment performs poorly, it won’t be enough to offset the gains from other types of investments.

Whether you’re a Do-It-Yourself investor who manages your own accounts or would prefer to have your money managed by someone else, you can find options to meet your needs on NerdWallet. We’ve rated online brokers and robo-advisors based on their fees and minimums, investment choices, customer support, and mobile app capabilities. Choose the best broker for you based on your unique financial situation and investing goals.