Best Short Term Investments
The best short term investments are going to be like any other
investment that is considered “best”, low risk high yield. It is every investors dream to
find the perfect vehicle that has the highest gains while protecting the principal. Of course
that might just be utopia speaking. There are some really great short term investments that
just about fit the bill.
There are a lot of pros that hail one short term investment over the
other, but if you step back and take a look at the offerings those investments that are short
term and heralded as the best all meet the same criteria; low risk, decent yields.
There are some good vehicles that are perfect for the novice or the beginner. Treasury
bills are a great vehicle not only for the beginner but for the seasoned investor as well. They are
relatively safe, and usually mature within a year, they are backed by the US government so unless the
government should fall any time soon, your money will be safe. Treasury notes are longer term
Government debt is never ending so it is always a possible avenue for some short term
Bonds, the I series in particular is a great way to invest for the short term, of
course there are some restrictions in place, like if you cash out before five years you are going to have to
pay some penalties. Municipal bonds are similar to treasury notes, except they are backed by the city or the
state, there are some tricky rules with these short term investments as well, but all and all they are a good safe vehicle for the
Money markets or Certificate of Deposits are also a pretty safe bet for the best short
term investment where hanging on to the principal is more important than exceeding yield expectations.
Corporate bonds are a good choice as the best short term investment for seasoned
investors. The worst off a company is as far as debt is concerned the higher the yields will be on pay out,
but off course with high yields there is a higher risk to the principal investment, that is why this type of
vehicle is better attempted by some one that has a bit of experience in the investment world.
Stocks and other equities also may prove to be the best short term investment for
someone that has a bit of experience under their belt when it comes to trading.
Consider Your Goals
The best short term investment is going to be the investment that is going to further
your financial goals. If you know you are going to need the money in less than a year, than putting in an
investment vehicle that you won’t see any returns from for a year is just a bad idea. You want to make money not lose money to penalties.
Figure out your goals, and then look for a vehicle that closes matches your goals as
far as timing is concerned, keep your goals realistic, don’t expect to be an overnight success. Follow these
principles and you will find the best short term investments
for your particular situation.