What is the best option for short term investment?

I want to invest for 6 months.

Asked by Ajsays

3 Answers

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Answered by Kim Miller, CFP®PRO+ in Redmond, WA
Hi -
The best option for money you want to use in six months is a savings account. That is the only way you can be sure you'll have the money when you need it. Investing in stocks (for example) for such a short time period is very high risk, meaning you stand a good chance of losing money. True investing is for longer time periods. Good luck! | 01.21.15 @ 00:06
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$commenter.renderDisplayableName() — {comment} | 12.05.16 @ 04:43
Answered by MoneyTips Writing Staff, Financial Adviser in Los Angeles, CA
. It all depends on your broader goals, your other investments, and your level of risk tolerance. But broadly speaking, short-term investments – meaning those with a term of one year or less -- are typically made in money market funds, short term certificates of deposit, savings accounts or other cash equivalents, as these assets do not fluctuate in principal value like stocks and bonds.

Put simply, if you want your money back in a year or less, you don’t have the luxury of recovering possible losses incurred by investing in assets exposed to market risk.
Admittedly, cash equivalent investments pay very low returns today, but you can maximize your return by shopping around for the best rate. For example, as of today (1/20/15), you can get a federally insured one-year CD that pays you as little as .75 or as much as 1.15%.

You won’t get rich this way, but you will protect your principal, which is a key objective in short term investing.
| 01.21.15 @ 03:21
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$commenter.renderDisplayableName() — {comment} | 12.05.16 @ 04:43
Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Hi Ajsays,

What is the amount you have to invest and what kind of return do you need? Also, why the 6 month time clock?
Money market accounts, CD's & savings rate will most likely return less than 2% during the next 6 months. We call this the "money allusion' because you make less than inflation. So, we do not suggest you use these for positive ROI.
We have some cash-flow strategies that generate around 20-30%/yr. During the previous six months, they generated around 20%. Restrictions apply and the rate varies. There are different strategies. So, kindly contact us directly and provide the information requested above. Then, we can customize something that fits your situation. No obligation

Yes, there are risks. the greatest risk is not knowing what you are doing. Here is a MoneyTips article about Risk.

Its not what you make; Its what you keep that determines your lifestyle,

| 06.02.16 @ 22:16
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$commenter.renderDisplayableName() — {comment} | 12.05.16 @ 04:43
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Answered by

Kim Miller
Kim Miller, CFP®PRO+ in Redmond, WA