Investing

Investing is the act of allocating money to achieve a financial goal.

Investing involves putting money into investments to achieve a certain goal. Different investments have different risk and return profiles, so an investor’s portfolio will vary based on the goal. If an investor’s goal is decades from now (like retirement), the investor can afford to put money into riskier, higher-returning assets like stocks. If the financial goal is closer (saving for a vacation), the money should be in less-risky assets like money market funds or certificates of deposit (CDs).