Set Financial Goals

Each investment comes with a different level of liquidity, which is important to consider as you are thinking about different investment options.

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Planning for your short-term goals

Your money has needs to fill. Your short-term goals can seem more like financial obligations at times and should be something that’s very familiar to you already. These are expenses such as rent/mortgage, utilities, recurring bills and near-term plans for trips or bigger purchases. You’ll want to ensure that you can cover these expenses and short-term goals first to be able to build a plan for your longer term goals. Budgeting is very important in this category, but we’re going to stay focused on the different ways to accomplish your short-term goals.

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Spending Account

A checking account is one of the most basic and best options for your immediate needs in your budget. Find a checking account that has the different perks that are meaningful to you. This typically comes with a debit card and is a great start to build a relationship with a bank.

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You can always have a strategy to manage cash at hand or even consider alternative forms of money transmitting such as cryptocurrencies. No matter what you do, you’ll want to have a form of liquid currency ready to go for your day to day spending needs.

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Emergency fund

A savings account can be a good option if you need immediate access to your cash. Most banks offer savings accounts and some even offer special rates for short-term goals.

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A money market account might be a good option for you. This is similar to a cash account (checking or savings), but usually has higher interest rates as its typically swept into an account that has potential higher interest. This can be a good option if you want to earn some interest on your money while still having access to it without too much of a lockup.

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Planning for Mid-Term Goals

What is considered a mid-term goal? A mid-term goal is usually for something that is further down the road, such as a down payment on a house, a new car, or even retirement.

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These goals typically have a timeline of 2 to 10 years, and at times more. It just boils down to investor preference.

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Fixed income instruments

A certificate of deposit is a type of savings account where you agree to keep your money in the account for a set period of time, usually six months to a year. In return, you usually earn a higher interest rate than a traditional savings account.

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Lower risk investments

A short term bond fund is a loan you provide to a company or government, and the return is the interest collected on the loan. Like any investment, they are not risk-free, so that is important to keep in mind, so make sure to do your research before investing. Investment brokers are typically where investors purchase short-term bond funds.

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Planning for Long-Term Goals

What is considered a long-term goal? A long-term goal is usually for something further down the road, such as retirement, college tuition for your children, or even purchasing a vacation home.

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These goals typically have a timeline of 10 years or more.

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Funds (Mutual Funds & ETFs)

A mutual fund is an investment that pools money from many investors and invests it in a variety of securities, such as stocks, bonds, and short-term investments. Mutual funds can be a good option for long-term goals because they offer professional management and have the potential to offer higher returns than other investment options, such as bonds.

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An ETF is a type of investment that tracks a specific market index, such as the S&P 500. ETFs can be a good option for long-term goals because they offer a way to diversify your portfolio and have the potential to offer higher returns than other investment options, such as bonds.

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Stocks

A stock is a financial asset that represents part ownership in a corporation. Stocks can be important for long term financial goals because they offer the potential for capital appreciation, which is the increase in the value of an asset over time. For example, if you purchase a stock for $100 and it increases in value to $120 over the next year, your capital appreciation is $20. Capital appreciation can help you reach your long-term financial goals by providing you with the funds you need to invest in other assets or to purchase items you may need in the future.

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Real Estate

Real estate investing can be a great way to reach your long-term financial goals. There are many different ways to get started in real estate investing. You can purchase a property on your own or with partners, or you can invest in a real estate investment trust (REIT).

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If you're thinking about investing in real estate, there are a few things you should keep in mind. First, it's important to do your research and understand the market. You'll need to know what properties are worth and how much renters are willing to pay. You'll also need to have a good understanding of the financial aspects of real estate investing, such as mortgage financing, taxes, and insurance.

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When you're thinking about investing in real estate, it's important to do your research and understand the risks involved. Real estate investing can be a great way to build your wealth, but it's not without its risks. You'll need to consider the potential for loss of principal, as well as the possibility of vacancy and repair costs.

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Private Equity

Private equity is another way to invest for long term financial goals. It offers the potential for high returns, and can help diversify a portfolio. Private equity can also provide access to capital that may not be available through traditional channels.

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When considering private equity as an investment, it is important to work with a reputable and experienced firm. Doing so can help ensure that your investments are managed properly and that your rights as an investor are protected.When considering private equity as an investment, it is important to work with a reputable and experienced firm. Doing so can help ensure that your investments are managed properly and that your rights as an investor are protected.

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Alternative Investments

When it comes to investing, there are a lot of traditional options out there. However, you may be looking for something a little different. Maybe you’re looking for something with the potential for higher returns and less risk. If this is the case, then alternative investments may be right for you.

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Alternative investments are those that fall outside of the traditional asset classes. This can include things like hedge funds, private equity, and venture capital, but it can also include cryptoassets and collectibles. These types of investments can be more volatile than traditional investments, but they also have the potential for higher returns.

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Cryptoassets and collectibles are often less expensive than traditional investments, and they have the potential to go up in value over time. Cryptoassets are digital assets that use cryptography to secure their transactions. Bitcoin, Ethereum, and Litecoin are all examples of cryptoassets. Collectibles are items that are rare or have historic value. Some examples of collectibles include art, coins, and stamps.

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Investing in cryptoassets and collectibles can be a good way to diversify your portfolio. They can provide you with the potential for higher returns, while also helping to protect you from the downside risk of traditional investments. If you're looking for something different to invest in, then alternative investments like cryptoassets and collectibles can also be a good option.

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Concluding thoughts

As you can see, there are many different options available when it comes to planning for your financial goals. At the end of the day, this is just a reference document, but is not advice, as it's up to you as an investor to determine what is right for you. It’s important to consider your timeline and what you need access to the money for as you decide which option is best for you.