{"id":78,"date":"2020-10-26T06:48:26","date_gmt":"2020-10-26T13:48:26","guid":{"rendered":"https:\/\/hispanabella.com\/?p=78"},"modified":"2021-07-27T21:55:13","modified_gmt":"2021-07-28T04:55:13","slug":"investments","status":"publish","type":"post","link":"https:\/\/hispanabella.com\/investments\/","title":{"rendered":"Short-term vs Long-term Investments"},"content":{"rendered":"<p>Hola bellas!\u00a0 Have you ever had to make a decision that would help you in the short-term but would set you back in the long-term, or vise-versa? For example, you decided to start working multiple jobs to make some fast cash (short-term), while putting off a college education. Sure, you&#8217;ll make money, but you&#8217;ll limit how much you can earn down the line.\u00a0 Versus going to college and working towards a career (long-term) that will pay off at least 10x more than what you would have earned by not going to college.\u00a0 These are similar decisions that you have to make when <a href=\"https:\/\/hispanabella.com\/lgreat-investment-options-to-make-extra-cash\/\" target=\"_blank\" rel=\"noopener noreferrer\">investing<\/a> your money short-term versus long-term.<\/p>\n<p><center><iframe loading=\"lazy\" class=\"giphy-embed\" src=\"https:\/\/giphy.com\/embed\/3o6gDWzmAzrpi5DQU8\" width=\"480\" height=\"480\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/center><a href=\"https:\/\/giphy.com\/gifs\/gq-kim-kardashian-make-it-rain-money-shower-3o6gDWzmAzrpi5DQU8\" target=\"_blank\" rel=\"noopener\">via GIPHY<\/a><\/p>\n<h3>Short-term Investments<\/h3>\n<p>\u2022 Short-term investments are any investment that you keep for three years or less. An example of a short-term investment would be day trading stocks, hoping to make a large profit quickly, but it\u2019s very risky to do that because you might lose some of the money you invested.\u00a0 Another downside to short-term investments is that they\u2019re taxed as if they were part of your ordinary income, which is a lot higher than long-term capital gains are taxed.<\/p>\n<h3>Long-term Investments<\/h3>\n<p>\u2022 Long-term investments are those that you expect to keep for many years. Long-term investments usually have a higher chance of maximizing your return over ten years.\u00a0 When you purchase long-term investments, it is recommended that you don\u2019t check your investment\u2019s performance too often, because you might be tempted to sell if you notice that there was a massive drop in the market. You don\u2019t want to sell when the price goes down and lose money.\u00a0 It\u2019s better to hold onto the investment and wait for the value to go up long-term.<\/p>\n<p>Historically, the <a href=\"https:\/\/www.marketwatch.com\/tools\/marketsummary\" target=\"_blank\" rel=\"noopener\">market<\/a> has always gone up over the years.\u00a0 A benefit of long-term capital gains is that you\u2019re taxed at a lower rate than short-term capital gains.\u00a0 The most awesome part about this is that if you\u2019re still young, single, and earning less than $39,375, your long-term capital gains tax will be 0%!!!\u00a0 You should take advantage of this and start investing.<\/p>\n<p>If you\u2019re <em>lista<\/em> (ready) to start investing, make sure to <a href=\"https:\/\/hispanabella.com\/diversification\/\" target=\"_blank\" rel=\"noopener noreferrer\">diversify<\/a> your investments so that you don\u2019t place all your eggs in one basket!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hola bellas!\u00a0 Have you ever had to make a decision that would help you in the short-term but would set you back in the long-term, or vise-versa? For example, you decided to start working multiple jobs to make some fast cash (short-term), while putting off a college education. Sure, you&#8217;ll make money, but you&#8217;ll limit [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":932,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/posts\/78"}],"collection":[{"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/comments?post=78"}],"version-history":[{"count":0,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/posts\/78\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/media\/932"}],"wp:attachment":[{"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/media?parent=78"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/categories?post=78"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/tags?post=78"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}