Term Investments Today
Folks always ask
“what are the best short term investments?” and the answer
is really quite simple. It is an individual preference. The best short term investments are
obviously ones that you will make money from that is after all the goal in any investment
There are some that
are better than others, because they are lower risk with a decent return. Keep in mind though
that every investment has a certain amount of risk, there is no such thing as a risk free
Points To Ponder
term investments come in all shapes and sizes, there are bonds for municipal debt, savings, Money
Market Accounts, Money Market Funds, Certificate of Deposits, T Notes and a slew of other places that you can
park your money for the short term.
are several points that you need to consider before making any investment decisions.
How long can you keep the money
parked? Is this money, money that you are not going to miss or wont need to tap into for a year or so? If it is than
you are in a much better position to find the best short term investments. Many short term investments that
return the highest yields are investments that are going tie up your money for a certain term. Debt investments
typically will tie up your money for at least 6 months, this means that if you want it back you are going to
have to pay in the form of penalties. If you need
to be able to move your money around more freely than you may want to consider a limited transaction account in
the form of a Money Market Fund or a Money Market Account.
How much money can you invest? Some
bonds, T Notes, MMF and MMA and Certificate of Deposits require a certain amount to purchase or open. This may
affect your options. You may be limited in your investment vehicle options by the amount of money you can afford
determine the best short term investments there are certain qualities that need to be considered. Flexibility is a great component of any investment. Of course
return is also a huge concern. Low risk is another
quality that is super important.
of the best short term investment options that is flexible has a decent return and is very low
risk. Money market funds are usually managed by
brokerage houses. They are very safe vehicles and offer a much higher return than traditional savings
accounts. A MMF offers flexibility , a decent
return and low risk meeting all the qualities of one of the best short term investments.
Another one of the best short term
investments is the I Bonds, this is a treasury bond that only lacks flexibility but meets all the other
qualities of the best short term investments.
are plenty of short term investments to choose from and many of them can easily fit
into the best short term investments category. Finding one that fits your goals and situation is relatively