What is the best option for short term investment?
I want to invest for 6 months.
Answers | 3
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!
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.
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,