Short Term Investments  Short Term investment

Best Short 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 vehicle.  

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 investment.  




Points To Ponder  

Short 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.  

There 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 to invest.  

Best Qualities  

To 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. 

One 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.  

There 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 easy.