Why is the first rule of investing to only invest money that wont be needed for at least five years?

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Jazmin Bean

8 April, 22:10

Why is the first rule of investing to only invest money that wont be needed for at least five years?

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Kristian · Answer 1

Because an investment takes time to mature - if you need the money in the next five years you shouldn't be investing it you should be saving it. Also, you may not have a successful investment and may not receive anything back.