Life never has been a straight line. Many of us might have realized the high level of uncertainties in life. Though we can't stop bad things from happening to us, we do get prepared for the future. And from getting prepared I mean to grow strong financially. To maintain a good lifestyle is important under all circumstances but it is not that easy. If we get close to the ground level, we find only a few people can sustain healthy & convenient lives in bad weather while some others fail miserably. With the help of flawless financial planning, you can get better prepared for unforeseen challenges of life. And, undoubtedly, short-term investment is an important part of financial planning. As you are reading this post then the chances are high that you are looking for the best short term investment option with high returns in 2020.
An ideal life demands a harmonious relationship between time & money. As we all know, a human’s lifespan is around 60 to 70 years in which we work for 25-30 years only. So, it is not difficult to understand why we need efficient short term investments to make our financial planning productive and successful. So, let's take a close look at quick but effective financial asset and investment products available in 2020.
What are the best short term investments?
One of the best parts of today's modern time & era is that we have got many best short-term investment products & services. Now with some tips & tricks, building wealth & raising bank balance is not a grueling work. Find below the information about excellent short term investments for small amounts of money.
Bank Fixed Deposit: Bank Fixed Deposit is also known as FDs. As the name suggests, FD is a financial instrument largely offered by the banks and financial intuitions to the investors. FD as a short-term investment could be an excellent option for those people who don't want to run any risk and at the same time want a guaranteed rate of interest. Also, be informed that once you put your money in FD, you should not cancel it before maturity or withdraw money. Otherwise, you may lose an entire or a big portion of your money.
Money Market Accounts: Money Market Accounts are something like a saving bank account but they come with some additional benefits. If we compare it with FDs, Money Market Accounts are quite flexible and easy to maintain. But, the rate of interest is lesser than the FDs. Though it is better than regular saving accounts as the rate of interest is comparatively slightly higher.
Treasuries: Treasuries are traditional but, still, effective ways of investments. Treasuries allow the investors to buy & sell Government bonds, bills, securities & notes. It could be a best option for those who want to play safe.
Municipal Bonds: Municipal bonds are offered by various Government agencies. The best thing about investing in Municipal bonds is that you can save on taxes and at the same time earn a fixed amount of interest while keeping your money safe.
How can I double my money in one year?
Probably, this is one of the most frequently asked questions over the internet. But, as you know that every investment either demands a long time or risk. In the market there are both types of investment products which are said to make money double but they come with many strings attached. There are many people who have been successful to double their bank balance through investing in Stocks, Mutual Funds and Bitcoins. But, on the other hand, many horrible stories have also made their ways
Hence, I leave the decision to your shoulder to make a choice. You can opt for the Stocks market, Mutual Funds and Cryptocurrencies, if you desire to make your money double is stronger than your patience. Otherwise, play safe and earn slowly but definitely.
What are the advantages & disadvantages of short-term investments?
Short-term investments' come with both advantages & disadvantages. The good thing about such kinds of investments is that they consume less time. But, the sad truth about them is that they yield comparatively less interest. Moreover, less tax benefits & many additional fees & charges make short-term investment less effective than long term investment.
That was all from us in today's post: What are the best short term investments 2020. We also discussed the risk associated with a common goal to make your money double in a year including the bright & dark side of short term investments. For more information & assistance, feel free to contact our experts.