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> Generally speaking, you shouldn't put your money in the market if you need it in the next 5 years. Did you really mean 5 years, or 5 months, or something els
by godot 5y ago
> Generally speaking, you shouldn't put your money in the market if you need it in the next 5 years.
Did you really mean 5 years, or 5 months, or something else? I'm not sure if I can take this statement seriously, or if it's meant to be a joke. 5 years is a long time.
- 01100011 5y agoYes, 5 years. http://nerdwallet.com/article/investing/where-to-put-short-term-savings http://nerdwallet.com/article/investing/where-to-put-short-t... If you're young and you've only seen the market go up you need to familiarize yourself with normal volatility patterns. The market can easily take a dump at any time and fail to provide a positive return for years.
- ant6n 5y ago> The market can easily take a dump at any time and fail to provide a positive return for years. ...or decades: "Nikkei index hits 30,000 for first time in three decades" https://asia.nikkei.com/Business/Markets/Nikkei-index-hits-30-000-for-first-time-in-three-decades https://asia.nikkei.com/Business/Markets/Nikkei-index-hits-3...
- niij 5y agoAsset prices don't always go up. The downturns have lasted much longer than 5 years. So if you want relative certainty you'll have $X at a certain date then you need to be in cash years beforehand. Otherwise you're gambling or have a backup source of cash.
- icedchai 5y agoDo you remember the lost decade? 2000-2009-ish... the markets went no where for almost 10 years.