Short Term Investments. Is There Such a Thing Today?

[ZINCYELLOW01]

I have been saving for a wedding and down payment on a house, both of which will happen within two years. I like the stock market over the long run, but have basically been hoarding my savings under the pillow (cash in the bank).

I came to my own conclusion last year that a wise, short-term investment vehicle (especially in financial markets) does not exist. Given my time horizon of 1-2 years, what would you do to grow a lump sum of cash?

Try to keep it legal op:

 

[ff500]

You could try flipping a house. I've never done it, but I think there are a few members on this site that have.

 

[thecrimson]

I flip pennies. As in otc/pink sheets. Very short term but you can make a killing. That being said, the risk is probably 10x worse then anything out there. There's a method to the madness though and if you stick to your gameplan/rules, you can do well.

 

[Njc0las]

I have been saving for a wedding and down payment on a house, both of which will happen within two years. I like the stock market over the long run, but have basically been hoarding my savings under the pillow (cash in the bank).

I came to my own conclusion last year that a wise, short-term investment vehicle (especially in financial markets) does not exist. Given my time horizon of 1-2 years, what would you do to grow a lump sum of cash?

Try to keep it legal op:

Invest in an online pyramid scheme and get out right away.

 

[jrd699]

There is a million ways to make money, with money. The two important things are, be smart, and be willing to work hard. I know that's a generic answer, but if you invest, and have no idea what your doing, you can get killed... Fast.... My second point, if you expect money to just grow with minimal effort, it won't! I'm sure you know this! House flipping can make you money, just refer to rules 1&2 you will be fine! Plan your work, then work your plan! Btw holding onto property is how true wealth is built..

 

[phillycobra99]

I'm banking on the stock market's improvement. I'm buying now and am hoping by late 2013-2014 I see a nice return.

 

[thecrimson]

I'm banking on the stock market's improvement. I'm buying now and am hoping by late 2013-2014 I see a nice return.

That's what a lot of ppl are doing, not a bad strategy but I think it might be a while

 

[ZINCYELLOW01]

There is a million ways to make money, with money. The two important things are, be smart, and be willing to work hard. I know that's a generic answer, but if you invest, and have no idea what your doing, you can get killed... Fast.... My second point, if you expect money to just grow with minimal effort, it won't! I'm sure you know this! House flipping can make you money, just refer to rules 1&2 you will be fine! Plan your work, then work your plan! Btw holding onto property is how true wealth is built..

I hear ya... This money is supplemental savings on top of my longer-term 401K, IRA, Life Insurance, etc. Unfortunately I can't be too involved in a project or business because I have a job that takes up most of my time. Basically I'm trying to pick the best way to manage a short-term savings account. I know a lot of successful people look at this site, so all input is appreciated.

 

[TrueBlueGT]

The other side of this scenario is that you most likely have a very low risk tolerance with this specific parcel of cash. "Honey, I invested all our wedding/home savings into the market and lost most of it" will not go over well. You do not want a lot of risk exposure with this money <2 yrs from the intended goal. If you put it out there, you could double up on what you have but also don't have enough time to overcome any losses.
Btw if you have a Roth Ira you used to be able to borrow from its principle for qualifying home purchases without incurring a penalty. If that's an option it could free up some dollars for you.
Btw.....don't get married. You have all this cash around. Take it and run for the ****ing hills.

 

[ZINCYELLOW01]

The other side of this scenario is that you most likely have a very low risk tolerance with this specific parcel of cash. "Honey, I invested all our wedding/home savings into the market and lost most of it" will not go over well. You do not want a lot of risk exposure with this money <2 yrs from the intended goal. Could double up on what you have but also don't have enough time to overcome any losses.

Exactly... I guess there's no such thing as low risk/high reward, but the best balance is what I'm after. .55% APY in the bank account is just sad.

 

[TrueBlueGT]

In that case I would invest in Obama. He's simply magical when it comes to making numbers just appear out of no where.

 

[Njc0las]

You could always sit in crowded places with a money bowl and a harmonica.

 

[ON D BIT]

Money Market account. The Roth IRA is another good option for home purchase.

Short term has a much higher risk reward factor. However risking a little say 10-20% of the your total investment could return a lot more than investing everything into a MM(20% return of 10% invested will return more than 1% return of 100% invested).

Also read "the little book that still beats the market" by Joel Greenblatt. Easy read that everyone can understand.

 

[ZINCYELLOW01]

In that case I would invest in Obama. He's simply magical when it comes to making numbers just appear out of no where.

:lol: Unfortunately too much of my paycheck already goes to Obama.

 

[oldmodman]

As of May 1, 2012 I sold all my stocks. They were all up nicely. Smith & Wesson Handgun Corporation was up 271% when I sold. They were my best investment. My worst was Verizon at a 23% profit over a seven month period.

Then I put quite a bit of my profits unto the "Ultra Short Q's" or "QID"

Since buying the QID on the second it has gone from 30.17 to a close on Friday of 37.12 or a profit of 6.95 a share. And as the market continues to fall it will go higher, probably much higher. 23+% profit is pretty decent for holding something for one month.

I expect the trauma in Europe to continue to pull the American stock market down through at least the end of the summer.

I am afraid that even a Romney victory may not be enough to reassure the Market of our financial future.

 

[Njc0las]

Very short term but you can make a killing

+1 do everything this guy says.

 

[mysterio]

Consider some short term muni bonds that your state issues. Bonds are rated by outside agencies, so you'd want something that's very highly rated. Muni bonds have the advantages of being very conservative, and their dividends are tax free at the Fed AND state level (if you buy them from the state you live in).

I"ll stop short of calling them a 'safe' investment, but they're pretty darn close.

Assuming you're in PA, here's a link for you:

Bonds - MunicipalBonds.com

 

[NyteByte]

I'm banking on the stock market's improvement. I'm buying now and am hoping by late 2013-2014 I see a nice return.

I'm doing the same thing. I have been investing a lot now, banking on the hopes that Obama will be defeated in Nov and we will get a Republican majority in the Senate.

Hopefully then, once the Democrat / Liberal polices are put to pasture, our economy will get on back track and begin a slow heal.

 

[evil04svtcobra]

I have been saving for a wedding and down payment on a house, both of which will happen within two years. I like the stock market over the long run, but have basically been hoarding my savings under the pillow (cash in the bank).

I came to my own conclusion last year that a wise, short-term investment vehicle (especially in financial markets) does not exist. Given my time horizon of 1-2 years, what would you do to grow a lump sum of cash?

Try to keep it legal op:

Invest money in your self. Go to school, and get a better job, so you can make more money.

 

[phillycobra99]

I'm doing the same thing. I have been investing a lot now, banking on the hopes that Obama will be defeated in Nov and we will get a Republican majority in the Senate.

Hopefully then, once the Democrat / Liberal polices are put to pasture, our economy will get on back track and begin a slow heal.

+1 A republican in office will almost surely cause the market to rise.