But there are plenty of other ways to invest for shorter-term goals (or just because).
And short-term investments are inherently riskier than your longer-term investments.
But they can also have big payoffs.
There are two types:prepaid tuition plansandcollege savings plans.
For our purposes, well focus on the latter.
Like retirement accounts, if you withdraw money for non-qualified expenses, youre hit with a penalty.
The potential downside is that youre not guaranteed to come out aheadthis is still investing.
you could compare different states 529 planshere.
(You also open retirement accounts through a broker.)
(Though transferring money between brokers will likely cost you.)
Theyre usually advertised to beginner investors.
Robos will suggest a portfolio based on an investor profile you create, differentiating them from online brokers.
The robo rebalances for you.
Some users like these in lieu of a savings account with an anemic interest rate.
you’ve got the option to set these up through a transfer agent.
Companies thatoffer thisinclude: 3M, Coca-Cola, Ford, IBM, McDonalds, Walmart, and many more.
You cancompare interest rates on high-yield savings accounts here.
CDs arent sexy but they can help in the short term, and theyre insured.
If you take money out before your term is up, youre hit with a penalty.
Then, as each shorter certificate matures, you reinvest the proceeds in the CD with the longest term.
The next year, you reinvest the funds from the matured two-year certificate in another five-year CD.
Ill say this: Crypto is definitely a thing you could make or loserealmoney on.
And I guess thats what investing is all about.
