length MATTERS 🫡🫡

if you’re a student / fresh grad contemplating if you should start off w a short or long term investment first, here is my unbiased take!

disclaimer: these are my personal thoughts and NOT official financial advice ɷ◡ɷ remember to do your own due diligence before investing!

⋆✴︎˚｡⋆ considerations:

— intention behind the investment?

— how much do you want to achieve, by when?

— your current financial situation

— your investment experience & expertise

❇️ short term first if,

⋆✴︎˚｡⋆ you have specific ST goals

if you know you need to access your money within the next few years for a specific purpose, your investment strategy should be tailored to provide liquidity and preserve capital.

⋆✴︎˚｡⋆ you're comfortable with higher risk

ST investing requires willingness to take on more risk bc lesser time spent in the market = lesser chance of riding OUT volatility. if you enjoy analyzing markets and making frequent trades, this is for you.

⋆✴︎˚｡⋆ you have time to monitor your investments

usually demand more active management: regular monitoring of the markets and timely decision-making etc! if learning how to invest is your passion, you’ll learn fast and hard for sure 🤓.

rmb that this comes w a higher risk of losses so you might wna start small first if you opt for this approach!

❇️ long term first if,

⋆✴︎˚｡⋆ your goals are distant (>10yrs away)

if you’re investing for the sake of investing (no goals yet but know the value of starting) or if your goals are decades away (like retirement), starting with long-term investments is ideal. the extended time horizon allows your investments to grow harder through compounding, and you can weather market fluctuations more easily.

⋆✴︎˚｡⋆ you’re new to investing

definitely less complex and stressful for beginners! bc it typically involves a buy-and-hold strategy, which allows you to learn about the markets over time without the pressure of making quick decisions. 😌

⋆✴︎˚｡⋆ you have low-moderate risk tolerance

if market volatility makes you uncomfortable, LT investing is generally safer. markets tend to correct and rise over time, reducing the risk of short-term losses.

⋆✴︎˚｡⋆ you prefer a hands off approach

usually requires less active management!!! ensure you’ve set yourself up with a diversified portfolio and let it grow, making adjustments only occasionally.

LT investing is a proven to build wealth over time and is esp effective for those looking to steadily grow their portfolio without the need for immediate returns!

i hope this gave you some clarity on how you can decide what’s best for your own financial needs (੭˃ᴗ˂)੭ 🤍 if you would like to know how i manage my own investments in greater detail, j leave a comment / pm me @/natyang on tele if i miss out on your comment 😆!

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