Most of us believe that investing should be for long-term goals. But there are many reasons for short-term investments depending on your financial goals.
An excellent short-term investment should never lose money, and it should not keep you awake at night worrying about it. A short-term investment must have the following:
Savings accounts opened at a bank or a brokerage account are insured by the Federal Deposit Insurance Corporation (FDIC) from theft, fraud, or if the financial institution goes bankrupt. You cannot lose your money.