Best Places To Invest Your Money For the Short Term

I have $65,000 I want to invest it where I can make the highest return possible I don’t want to lose any of my principal and then want access to my principal whenever I need it hey this is jeff rose goodfinancialcents.com I get questions like that pretty much all the time investors don’t want to make a lot of interest but yet don’t want to take any risk whatsoever and in this low interest rate environment that’s pretty much unheard of see your rates are at all-time lows or mortgage rates are all-time lows so trying to make the most amount of money in the short term is very hard today I want to share with you some of the best places that you can invest your money for the short term the first one may surprise you one of the best places that you can make money the short term is to pay off your debt I talked to so many people to have credit card debt consumer loans student loans whatever it may be they’re paying high interest rates yet they want to take their money and invest it in the short term if you’re only going to get 2 3 4 percent in the short term and you’re paying 8 9 10 12 percent on credit card debt or any other type of consumer debt then what’s the point of investing if you’re trying to make money in the short term pay off that debt by paying off that debt you’re going to make return by whatever the stated interest rate is other options you have when choosing the best places to put your short-term money is ditching your brick-and-mortar or your local bank or credit union now sorry to all the local banks but if you are comfortable going online you have the ability to open up online savings accounts online checking accounts and online at money market accounts and companies like Ally ing perk Street all these are offering fairly attractive interest rates especially compared to what your local bank is all not to mention the fact that the online banks don’t charge you certain transaction costs that sometimes you see with your brick and mortar and some of your bigger financial institutions up Bank of America it’s amazing how much technology is developed nowadays to where a lot of your online banks offer some of the same services that your brick-and-mortar or your local financial institutions are offering tour even even need them anymore and that’s depositing checks ATM withdrawals transferring money and everything else another option you have for investing your money for the short term is buying a CD now you can choose your brick-and-mortar location but I also encourage you to shop online online banks like Ally are very competitive with their CD rates if CDs aren’t paying enough or paying what you’re looking for then another option can be now this option comes with a little bit more risk but trying to find short term bonds even municipal bonds now you can buy the actual individual bonds themselves which is a little bit hard to come by but you can also find mutual funds or ETFs that are going to have short term bonds included in them now when I mean short term typically you’re looking for bonds with a maturity between three and five years you want anything longer than five years there’s this inverse relationship with interest rates and bond prices a little bit complex but you could lose your principal when interest rates go up so you want to make sure that you’re choosing the shortest term possible another option that I’m pretty partial to when investing your money flash short-term is peer-to-peer lending peer-to-peer companies such as Lending Club and prosper offer a very unique way to basically you become the banker so now you’re loaning money out and you are getting paid the interest rate that a bank would get when they make a loan to you if you were to apply for a home or an auto loan you can check out my review post where i show you how i open my Lending Club account and shows you how I’ve averaged just north of 8 just about 9% since I opened my account which is about three years ago and last but not least one of the best places that you can park your money for the short term is opening a Roth IRA now I can hear you’re thinking Jeff the Roth IRA is not investment and you’re right it’s not but by putting money to a Roth IRA at least you’re ensuring that you have money save for retirement now if you think you need it for the short term I would invest in the stock market or individual stocks keep it in something liquid and safe but if you recall with the rules of the Roth IRA you have access to your contributions at any time so if you put money into it and you need it you can always pull it out obviously you want to make sure that you’re investing it conservatively you don’t want to the stock market here but that way if you need it great pull out if you don’t you’ve got money save for retirement so that’s my recap for some of the best places that you can invest your money for the short term if you have any more questions good financial sense comm is where you find me you can also check me out on Facebook too this is Jeff rose certified financial planner take care