I just received a small cash windfall from an inheritance and wanting to invest or do something other than putting it in a CD or savings. I will need the money in about 8 to 12 months to put down on a home purchase. What have you done, short term. to maximize, lets say $60K to $70K? For example, I have a buddy who buys and sells all types of farm equipment, says he makes some good money each year doing this. I don't have the knowledge or land to put farm equipment on,but wanted to bring up an example.
Short term Investment Options
- Thread starter dacred
- Start date
Buy "out of the money" put options on Tesla, expiry in 12 months.
What ever you do, don't blow it on hookers and coke.
This is cash that you don't want to depreciate and have a home for. Sorry about the pun. I would go conservative and use a CD or short term bond if available. You don't want to risk not having your down payment of your dream house.
Yes it's not sexy but you'll have it when you need it
Yes it's not sexy but you'll have it when you need it
It's not sexy, but if you need the money for a down payment I would do whatever is low risk and will generate the most income--something like bonds. But I suspect the modest performance increase over CDs and savings is not worth the extra hassle.
For whatever its worth, I was in a similar situation and just put it all Vanguard funds. But I didn't need the money for a down payment anytime soon and my intention is to leave it there until I need it in retirement.
For whatever its worth, I was in a similar situation and just put it all Vanguard funds. But I didn't need the money for a down payment anytime soon and my intention is to leave it there until I need it in retirement.
Vanguard has some nice funds. I agree with your assessment
Yep. Best option for 12 months out there. Might as well earn 2 percent with no risk. Better than a savings account that will pay virtually nothing.
Easy to spend other people's money I know, but I would just put the money in savings and forego any short term gain you may get financially. I don't know how far you are into a home purchase/looking, but that's enough cash to purchase the land you would want to build on possibly. Having that money available when you need/want it, versus locked up in something and missing a good opportunity for the lot/dream house you want doesn't seem worth it to me for that short of a time frame.
Good luck.
Good luck.
I generally wouldn’t recommend putting money in the market at an all time high with the run we’ve had and the uncertainty of our economic and political climate of you want to pull it out in the next year.
I heard Iran is blowing our drones out of the sky, then we are retaliating with drone strikes on those who gave orders to take out our drones...
And of course there are the alien drones looking for oil in Colorado and Nebraska....
You could go for investing drone manufacturers...
And of course there are the alien drones looking for oil in Colorado and Nebraska....
You could go for investing drone manufacturers...
I'm just going to say it, there's no reason to invest any amount of money that you are just going to take back out within a year. If you already have plans to spend it, just put it in your savings account because you aren't going to make jackcrap in that amount of time.
If you're a true husker fan you put it all on NU winning the B1G, making the playoff, winning a natty, and Martinez winning a Heisman! Odds have to be good for one of those!
There is a huge dip/dive coming in November regardless of who gets elected... Election years are hell on investors in my bias/humble experience/opinion. Maybe buy 50k in gold, stare at it for five months, and then sell it for 56k? Or 48k?
The words "short term" and "investment" do not belong together. Short-term you save and use low-risk money market instruments (CDs, money market accounts, etc.). Long-term you invest and use capital market securities and real assets which are riskier. I would contact some banks to see what they can do for you CD-wise. Sometimes there are "specials" for a specified period -- e.g. 6 months, 9 months, or 11 months. You won't make a killing, but that's not the point. There's a risk / return paradigm in finance.
It depends on your risk tolerance. If you are depending on the money to be there in 12 months (and can’t handle any of it being lost) then don’t put it in the market. Many great options have already been listed above.
If you don’t mind rolling the dice and can stand to lose some, then put it in the market. But that doesn’t seem to make a lot of sense to me for what little I know about the situation. Be conservative with it and live with crappy interest rates.
If you don’t mind rolling the dice and can stand to lose some, then put it in the market. But that doesn’t seem to make a lot of sense to me for what little I know about the situation. Be conservative with it and live with crappy interest rates.
LSU ML -225. 45% return by Jan 14th, 2020. 
There is risk of loss of principal in bonds or bond funds.
With your time frame and goal it would be foolish IMO to do anything other than something super conservative. I had a series 7 securities license and was a financial adviser for several years. I would stick the money in a federally insured bank account and forget about it until you buy the house. With that short of a time horizon anything other than that isn't logical. Buying and selling farm equipment is fine if you know the market extremely well but that isn't an investment vehicle. That's a business enterprise.
Yeah, but Don the horse from Hot to Trot loves Indio Oats!
But really, you know you are buying a house with it, why bother with dicking around with the market and fees and keeping an eye on it and then selling it and then taxes...
Put it in the bank where in 12 months your 70K will be 70K...but your house and be happy that someone dead left you some cash.
Better odds if you just head over to CB and put it all on black on the wheel.
I'm betting a certain someone knows his chances of winning a certain election right around the corner goes way up if the market stays up so I don't think one needs to worry about the market at an all time high for a bit, it can still grow.
Some banks are at 2% for 9 or 12 month cd's, might be worth looking for the short term.
It should go to 36000.BUT if things go south your probably looking at 11000-12000. Sucks to be wrong and d
Invest or protect? You invest for the long haul - 5 years or longer, you protect for the short term of the 8-12 months.
You have mixed requests for the money and if all options were equal we would all be rich. Ask yourself some questions. Are you willing to "invest" that money and potentially lose 20-30% of its value in the short term? Your time horizon does not allow for the natural ups and downs of the market.
If you want to sleep at night and in 12 months have that capital ready for a house then don't invest for the long haul. Find an on-line bank who is paying well and transfer the money, you won't make much but you also will have it when you need it.
As has been said, you can lose money on bonds, they are not guaranteed. You can research and find some food CD rates but you have a range of 8-12 months, that is a very short period of time in the market perspective.
Are you more concerned about the return ON your money or the return OF your money? Best of luck
You have mixed requests for the money and if all options were equal we would all be rich. Ask yourself some questions. Are you willing to "invest" that money and potentially lose 20-30% of its value in the short term? Your time horizon does not allow for the natural ups and downs of the market.
If you want to sleep at night and in 12 months have that capital ready for a house then don't invest for the long haul. Find an on-line bank who is paying well and transfer the money, you won't make much but you also will have it when you need it.
As has been said, you can lose money on bonds, they are not guaranteed. You can research and find some food CD rates but you have a range of 8-12 months, that is a very short period of time in the market perspective.
Are you more concerned about the return ON your money or the return OF your money? Best of luck
Do you really want to spend every day and night worrying about a market crash? If its money you weren't necessary relying on then sure go ahead and find something to gamble it on. I'm poor and paranoid, I'm going safe options.
Agree with others who have pointed out that given your very short time frame, getting a small but guaranteed return is the way to go. Then you can dedicate your time and energy into selecting exactly the right house, because that decision is probably going to have more impact on your financial future than whatever short-term return you get on this money.
Some online savings accounts return 2.1% APR. Also with interest rates continuing to be super low. Profits continuing to be steady and trade deals with China getting closer to getting done an S&P500 index fund would be a good idea as well. You can put 10 to 20% in bonds to limit your loss exposure if you want. But those are probably the first 2 things I would do. When Warren Buffett dies 90% of his money is going into S&P500 index funds and the other 10% is going into short term bonds.
65 years in various finance jobs says if you need the money in 12 mos. or less you put it any where you want as long as it is guaranteed to be there when you need it. There is no risk investment that assures you will have the full amount when wanted.
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