Where shoud I invest 150K for short term?

Question

I just received some money and was wondering where I should invest 150k short term to get the highest yield. I would like to be able to take out $30k per year until it is zero and have low to moderate risk. Thanks all for your help.

Ok here is some more information. The money is inheritance. I am a medical student and have some pretty expensive bills. My expense is approximately 65,000 altogether per year (have 2.5 years left, then residency, where I'll probably make 30k a year). And my loans are about 6-7% interest. So basically, I want to pay off my loans a little later and not right now, and earn some interest to counter them in the meantime. If I was to actually invest the money longterm, I don't know if they would outperform the loans, and I'm unsure of the quality of living I'd have trying to pay them off, so I don't want to invest long term. Does that help?

Answer 1

Well, for no risk, you could buy a bunch of CDs and ladder them.

1 year CD- 30k
2 year CD- 30k
3 year CD- 30k
etc.

If you don't want your money locked up, look for some high interest rate FDIC insured online savings account. Right now there are several paying 5.30% or more. Go to bankrate.com to find them and the CDs.

If you want to introduce a little risk for potential gain, maybe put the first 60k in laddered CDs and the balance in a balanced low cost mutual fund, like the Vanguard Star Fund, which has about 60% in stocks, and 40% in bonds and short term securities.

UPDATE: I just looked and Countrywide bank has an online savings account paying 5.50% right now for balances over 10,000.

Answer 2

Are you wanting to sit on it and make somewhere between 5-10% on intrest or are you looking for a place to invest the money, and take in 12-15% profit? What if you could make 25-45% profit?

If you want to invest your money, you will want to manage it on your own, or pay big bucks to someone to manage it for you; which is a bad thing to do. As an individual your just too small of a fish in a big pond for any account manager to bother contacting you reguarding market conditions. Open your own brokerage account and do your own trading. Be responsible for your own finances. Take charge of your income.

Investools http://www.investools.com has a very good program where you can take a friend, spouce, or family member through their web based stock trading program for the price of one. They have a five step method of inveting in stocks and options.

STEP 1: SEARCHING FOR STOCKS
STEP 2: INDUSTRY GROUP ANALYSIS
STEP 3: FUNDAMENTAL ANALYSIS
STEP 4: TECHNICAL ANALYSIS
STEP 5: PORTFOLIO MANAGEMENT
Look for the free 2 hour class coming to your area.

I've been in the program since Dec. 06 and I'm in the Basic Options course now. I'm doing better than if I had entrusted my money to someone else.

Answer 3

For SHORT term, you're going to want to go with CD's.

For very short term, you're going to want to look at Add On CD's.

An add on CD has the same general purposes as a normal CD. The only difference is-- you can add money to it, and you can withdraw money from it once every six months without a penalty. So basically, you get the effect of the CD but the convienence of a savings account. The rates on them vary, so you can call 1-800-FTB-LINK or check out FTB.com.

Answer 4

Put it into one of the mutual fund companies Money Market taxable accounts. They are paying about 5% + right now with really no risk.(except of course interest rates have the risk of going down over those 5 short year you need) This way you may get about 6 months more beyond the 5 years. Fidelity or Vanguard.

Answer 5

Shelter insurance has a cds paying 7 percent. you can do 6 month or a year cd. but renew it every year, you probably could make it last longer if your thrifty just liveing off the interest roughly 7 to 10 thousand.. But you can take any amount out you want but you would loose some interest...

Dont play with the stock market now... you could buy euro dollar as our dollar is rapidly falling. if the dollar hits 65 cents your money is worthess,,, I invest in gold,silver, euros, and cds... they are pretty much safe,,

Answer 6

The best you'll get is by putting 3k into an ISA paying 6.5% and the same rate in a web saver. Several 'high street' banks to choose from. You'd earn approx £16 per month in the ISA and approx £31 per month (nett) in a web saver on 7k.

Answer 7

if you don't want to take any risk with the money, just put it in a money market account, you will make around 5% interest a year

if you can invest it, a good balanced mutual fund like the balanced fund from the american funds would be a winner

if you avoid touching the money like you are planning and invest it for 20 years or so, you may make yourself a millionare

Answer 8

I would like to say for my daughter's college education, but that wouldn't be fair (but it would be appreciated). Anyway, find someone RELIABLE to give you some sage wisdom on this (not someone here necessarily). Do some research first and split it 50/50, then it's all not lost. Good luck. Oh, one good thing is to invest in a life-saving device for toddlers/infants in car seats that will remind parents that the child is in the back seat and not leave the child in the car (possibly sleeping) and the child perishes in a hot car. Detroit car makers are more concerned for stereos than safety devices!

Answer 9

Consider the Vanguard Prime Money Market Fund with a current yield of 5.07%:
https://flagship.vanguard.com/VGApp/hnw/FundsSnapshot?FundId=0030&FundIntExt=INT
If you are in a high tax bracket you may prefer their tax exempt money market funds:
https://flagship.vanguard.com/VGApp/hnw/FundsByType
Sometimes other institutions will have a higher teaser rate, but Vanguard tends to have the highest yields I've found over the long run. (Vanguard money markets are not FDIC insured, however.)

Article on teaser rates:
http://www.marketwatch.com/news/story/banks-advertised-rates-dont-always/story.aspx?guid=%7B0A13B6E2-FFB2-4E2B-BD42-E2D1E01C52E5%7D

ING and HSBC often have rates close to Vanguard, and most of their products are FDIC insured. Bankrate.com provides links to CD's with high interest rates. You can check these at the following links:
http://home.ingdirect.com/
http://www.us.hsbc.com/1/2/3/personal/savings?code=husa
http://www.bankrate.com/

(If you are willing to accept some volatility, you should consider putting some money into no-load low expense mutual funds. These are not guaranteed, but over the long run produce much higher returns.)


I hope you find these sites useful.

Answer 10

Place it in a online savings bank such as ING or HSBC, or you can consider a CD.