I'm buying a house in 6 months and i have 30K in my regular savings. I'm putting the money in a 6 month CD with ING for 5.15APY in the next few hours. Is this the best way to invest it. I want to make the best of the next six month. Please advise.
THanks
JI
2007-07-06 10:58:31 · 12 answers · asked by progress 2 in Business & Finance ➔ Investing
Yes, you have made the right decision. The tax advantages and potential appreciation of home ownership are still very good. Even though you can't count your home as an investment, you still need a place to live. Why pay off someone else's mortgage?
Since you apparently need the 30K for a down payment and move in/ fix up costs, the 6 month CD is a good way to go.
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2007-07-06 11:05:53 · answer #1 · answered by SWH 6 · 4⤊ 0⤋
Not. Probability requires the use of averages and an assumption of skill levels. At the highest reasonable level of skill, an expert would expect 30k to be turned into 1mm in no less than 20 years. In common sense language, the real problem is consistency and timing. Look at it like batting averages in the Major Leagues: A great average is way under .400, which means a great batter at the top of his game gets a hit less than 400 times with 1000 times at bat. It sounds horrible, but if someone hit .400 this year it would be big, big news. (The highest right now is .357) Back to investing: you cannot predict when you are going to win in the short run and you cannot win most of the time in the short run. If you aim for the home run, you will strike out a lot (pulling down your over all numbers). If you aim for just getting on base, your short term numbers will be very low.
2016-05-20 01:01:30 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The ING CD sounds good. You don't want to invest a home downpayment in anything risky because you might lose the ability to buy the home if the investment goes sour. For other ideas about where to invest the downpayment on a short term basis, see the webpage below. There's no way to know for sure which investment will maximize your income (because no honest person will claim to know the future with certainty). The most important thing is to keep the downpayment safe so you can follow through on your plan to buy a house.
2007-07-06 20:00:26 · answer #3 · answered by Uncle Leo 5 · 1⤊ 0⤋
This seems like a good idea, IMO. Most 6-month CDs are paying this rate, or very close. Based on your time horizon and the fact that you have a specific item to purchase with this money, a bank CD is probably the best choice for you.
A money market account is another option. However, money market accounts usually purchase bank CD's and Treasury Bonds. So, you'll wind up with about the same return as sticking it in the CD yourself.
2007-07-06 11:31:04 · answer #4 · answered by derobake 4 · 0⤊ 0⤋
If you're certain you won't be needing the money in between now and then, that sounds like the way to go. Otherwise I'd suggest going with the liquidity of an online money market account and giving up the .5 APY.
2007-07-06 11:29:42 · answer #5 · answered by Cris H 1 · 1⤊ 0⤋
A CD is the best way to go because you have a short investment time frame and you need to be sure to avoid losses so that you can still have the principle intact at the end.
2007-07-06 11:04:17 · answer #6 · answered by Ted 7 · 1⤊ 0⤋
Yea, if you need the money I don't know of anything better without risk. If you have a financial guy, you could ask if he has a good solid mutual fund that you could throw it into and easily retrieve it again in this time period, but I haven't done exactly that so I don't know how that might work. Ask about fees associated with that if you like that idea.
2007-07-06 14:45:46 · answer #7 · answered by The Scorpion 6 · 0⤊ 0⤋
If you buy mutuals or stocks...do not hold for 6 months.
Collect interest is the safest way for you to get your money back.
If you want to carry more risk and chase a better return then use some money to learn how to trade. Here is something that will be worth your time and money:
MarketClub Membership...gives you tools and education.
2007-07-06 14:38:46 · answer #8 · answered by Anonymous · 0⤊ 1⤋
If you don't want the money tied up at all and want to remain completely flexible with access to it, you could put it this simple saving account at 5.05%. It is FDIC insured.
www.emigrantdirect.com
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2007-07-06 15:43:44 · answer #9 · answered by Zak 5 · 0⤊ 0⤋
5.15 is a bit low.. 5.4 min.. i think.. my dad found a 6 month one for 6.25. yes, it was FDIC insured. this was like 3 months ago though. just try to get a better rate.
2007-07-06 11:25:14 · answer #10 · answered by dabo 1 · 1⤊ 0⤋