I have about $70,000.00 to invest short term (6months to a year). where would I get the best payback?

Question

I don't want it to be at risk...thanks

Answer 1

6 month t-bills. Treasury sells them every Monday morning that is not a holiday. Currently pay about 5% annually. Also free from state and local taxes. They are the safest of the safe investments.

Answer 2

Risk = expected return. If you want the most money back you have to accept the volatility that may come from it. Within an exact timeline like 6 months it is very hard to predict what will do best. But historically speaking, equity has a better return than debt because it has secondary claims to the assets of a company in the case of bankruptcy (more risk = greater return demanded). Furthermore, debt interest is paid first and earnings which drive stock process and (non preferred) dividends are paid next.

Some good reasons to believe the stock market will do well within the next six months:
1.Oil has been stable, and expensive oil has been priced into stock valuations.
2.The Federal Reserve has also been stable at historically LOW interest rate. Little movement is expected as the economy has cooled, and CPI (a measure of inflation) seems to be shrinking towards 2%.
3.The Merger and Leveraged Buy Out market have tremendous momentum right now. Last year was a record year of over $1.75 trillion. This year is expected to be even larger. This puts upward pressure on stocks as speculation is in the air.
4.Valuations (multiples) are relatively low at about 15-16 times forward looking earnings.

Some risk factors:
1.Any large oil shifts.
2.A war in Iran.
3.Dramatic slow down in corporate earnings.

In the end, I think stocks are the place to be for the next 6 months. Look at financial industries, eg Goldman Sachs. (ticker GS)

Disclaimer: I have no idea what I am talking about.

Answer 3

With your short time span and aversion to risk, I would suggest a Certificate of Deposit or Money Market Account. Search online, such as WNW.bank rate; to find the best rates. Local newspapers sometimes list rates for your area's banks also. You should be able to find a 6 mo - 1 yr. CD for around 5%. Far better than a 1% savings account. Good Luck.

Answer 4

There is always risk.

The greater the payback, the greater the risk.

I like Real Estate Mutual Funds, such as:
Excelisor Real Estate Fund - UMREX
Third Avenue Real Estate Fund - TAREX

Answer 5

PayPal is paying high interest rates right now on their deposits. Much better than the banks. Stock investments are too risky for short term. You can get up to 17% return on your money if you lend it to an individual....risky, too. Oh, Capitol One is paying 4%...check out sites on the internet with reputable companies, there are many.

Good Luck!

Answer 6

I do not know where all these dudes get 20% pa on the stock market. The DJ rose less than that in the last 5 years total.

Answer 7

You know that the greatest payback will have the greatest risk.

For absolutely NO risk, US treasury notes would be best, but you won't make more than 5% ($3500).

A good index fund would earn you more, but there would be a greater risk.

Answer 8

Depending where you need the result for you could spread it over a few assets. No risk would be the last answer given. If you want any tips for possible spreads just contact me.

Answer 9

Just go with a bank CD look around for the best rates. Vanguard has CD also. Call them Its your best bet get a CD

Answer 10

Hi,

Of course best payback would bi in forex or stock market trading. You may open trading account and start trading oneself or you could finde trader who would manage your funds.

Also you may invest with trader who accepts private investments. For example I pay to my investors at least 5% monthly for 12 months.

I could introduce you to one brokerage company in Austria that allows to trade from the same account currency pairs (forex), commodities, metals and cfd on shares. Total 500 instruments available; spread from 1 pip. If you open trading account under my referral I provide you for free with trading techniques that I successfully use for several years and you’ll get my assistance in the future.

If you have any question please do not hesitade and apply to me by pm or e-mail (press on my name)

Good luck!