is the stock market long term (for when you retire) income or short term income?

Answer 1

Your question is fairly vague. Are you asking about long-term vs short-term capital gains for taxes or a more general question about whether you should invest in the stock market for retirement purposes or for making money before retirement?

From a capital gains point of view:
- Stocks held for more than 1 year is generally considered long-term
- Stocks held for less than 1 year is generally considered short-term

From a general point of view: Most people use the stock market to generate income outside of retirement and can hold a stock for a very long time or a very short time. So it depends on your financial situation and how you need/use your money. Money specially for retirement should be used in 401k and IRA accounts.

This is not tax or financial advice. You should check with a tax/financial advisor for your situation.

Answer 2

You can use the market for whatever. However, commissions and fees involved with making large amounts of trades will eat away at any profit you make. I think it's best to use it as a long term tool of wealth accumulation. You get into a company that's going to be around in 20 years and the stock is nearly guaranteed to appreciate significantly in that time with inflation and things of the sort... unless the stock splits, which is never bad for you really.

Answer 3

It is both. Some people "day-trade" where they buy a stock at a low price and sell it at a higher price the same day or within days of the purchase. This is not recommended for the average consumer, as you might pay $4.95 to $29.95 (or even more) each time you buy or sell a stock. Unless you have a lot of money to trade, discount prices, and low commissions, I wouldn't even dream of a stock purchase in the short term.

If you do your homework on a particular stock, buy it at the right price and hold it. You have about the same chance as real estate of it growing in value. Both generally do, just watch the market.

I am not a financial broker, so I am not allowed to give financial advice. Please consider this as only what works for me, not advice to you. At a younger age, I invest in more risky items, to include stocks and aggressive mutual funds. As I grow older, I move the majority of my investments to less risky, but lower dividend plans, so that I have less risk of volitility.

Answer 4

Any investment past 1 year is considered a long term

Answer 5

Both.