I don't want anything high risk.
2006-09-11 18:36:25 · 14 answers · asked by Suzi S 1 in Business & Finance ➔ Investing
to still have access to the money with little risk you are basicly delegated to money market accounts like ingdirect.com and bank cd's. With the money market account you have complete access at any time, with the cd's i would take $10k and buy a 1 year cd every quarter x4 so you have $10k + interest renewing every quarter incase you need it and the other $6k goes into a money market incase you are in middle of the 3 months and can't wait. Also if you need all the money quickly you can cash the cd's with no risk of principal but you will lose some of the accumulated interest.
If your time horizon is larger until you need the fund then you might consider 5 5 year bonds bought yearly etc.
Mutual funds, bonds, bond funds, commodities, precious metals, all carry signigicant risk of principal.
2006-09-11 18:44:03 · answer #1 · answered by ken 3 · 1⤊ 0⤋
Open an INGDirect savings account - currently yields 4.40%, no fee, no service charge. You can link it to your checking account very easily. Interests compound monthly. Safe and liquid (quickly accessible)
Or you can invest into a money market fund (for example the Schwab Value Advantage Money Fund - Nasdaq:SWVXX) that currently yields an APY of 5.06% (APY=Annual percentage yield: the effective, or true, annual rate of return that takes into account the effect of compounding). This particular fund requires a minimum of $25K but it gets you a better yield than a fund with a lower threshold/minimum. You can retrieve the money within 24 to 48 hours so it is very liquid and very safe. For the SWVXX fund for example, and if you automatically reinvest the monthly dividend, your $46K will grow to $48,324.56 after a year and $50,766.60 after two years.
Plenty of banks and brokers offer money markets, simply compare APY as well as fund expenses before jumping in.
More info on money market funds here: http://www.investopedia.com/articles/02/120602.asp
Last option would be a Certificate of Deposit or "CD" but the money would not be immediately accessible (unless you're willing to pay a penalty for withdrawing before maturity). It's pretty safe but not as "liquid" as the two previous options. CD's can go from a month to several years. Most banks and brokers offer them.
More info on CDs here: http://www.investopedia.com/terms/c/certificateofdeposit.asp
2006-09-12 02:53:02 · answer #2 · answered by PP 2 · 1⤊ 0⤋
Depends on how much access you want. Just for emergencies? or do you need it to pay bills every month. No risk, good return, and safe is a fixed annuity purchased directly through an insurance company, not a bank or broker. Most have no fees to start, and no broker fees if you go to insurance co. We currently are paying 7% 1st year, and you can get to 10% every year, or turn it into a monthly income if you need that.
Let me know if you need a name
2006-09-13 12:55:49 · answer #3 · answered by Susan C 3 · 0⤊ 0⤋
The best option as per your requirement is to make deposits in saving accounts with leading banks so you could earn an income by way of interest and also withdraw your money as and when required
2006-09-12 02:16:43 · answer #4 · answered by moksha 1 · 0⤊ 0⤋
Depends what kind of risk you are willing to take.
For no risk, I recommend a savings acount such as ING Direct or Emigrant Direct. ING is at 4.4% or Emigrant at 5.15%.
Both allow you to transfer money in and out within days and without fees to/from your checking account.
2006-09-12 01:40:51 · answer #5 · answered by XR 2 · 0⤊ 0⤋
the best things go online banking and choose the highest rate they offer and you can deposit or withdraw the money anytime you want.thats what im doing now.they offer big interest if you have online savings than time deposit with no hiddenfees.
2006-09-12 03:00:03 · answer #6 · answered by kikaykrung 2 · 0⤊ 0⤋
there is an instrument called..money market...most banks offer it...
they give you a small interest rate..
but it is quite liquid and you can get
cash within 24-48 hrs.
inquire about it via your banks..usa or canada...and good luck...
ps. better split it in two parts
and put it in two or three different
banks...
hope it helps..
2006-09-12 01:40:51 · answer #7 · answered by s t 6 · 0⤊ 0⤋
an Equity Indexed Universal Life policy.
2006-09-12 01:54:29 · answer #8 · answered by Anonymous · 0⤊ 2⤋
Here's a strategy that can help you double your money in three years.You can also get out at any time:
http://www.inside-alpha.com/presentation.html
Let's make money!
Good luck
Marc
2006-09-12 08:02:14 · answer #9 · answered by Marc H. Mayor 2 · 0⤊ 1⤋
put it into a high interest savingsd account
2006-09-12 01:37:23 · answer #10 · answered by Mo 5 · 0⤊ 0⤋