I am preparing to go to college in the fall, and will come into a large inheritance when I turn 18.
I plan on using much of that money to pay for college. What is the best way to invest it in the meantime? It needs to be liquid enough to pay for my tuition every year, but I want to earn as much interest in the meantime as possible.
Answers | 2
Liquidity is the key and preservation of capital. If you have some funds that you will be using for your 3rd, 4th and 5th years in school you may want to use a floating rate fund. For years 1 and 2 a money market will create the liquidity you need. Divide it up if you have enough to cover more than the first 2 years.
Don;t so as I did and spend it on depreciating goods like a new car. I agree with Michael, I like the floating rate fund.