Short Term Investments

[Tammi67]

What would be the best option for short term financing for an income tax return? I don't have any IMMEDIATE uses for my return, but I don't just want to put it into the bank, because eventually I'll just spend it. I want it to make money for me, but I don't want it to be tied up long term either. Any advice?

 

[bettymae1121]

A cd may be what you're looking for. The interest isn't all that high but it does make the money less accesable for the length of whatever cd you get. And if an emergency pops up and you need the money early, you can get at it if you really needed to.

 

[MN Disneyfan]

I also think a CD would be a good idea. I tend to forget I have CD's until they mature.

 

[Ava]

I have an ING savings account that works well for me. The money is not linked to my debit card from my regular bank, so in order to get access to it I have to request a transfer from ING into my checking account. It takes a few days for the transfer to clear, so I have to have planned in advance for that money. (Last year I had to use some savings to pay medical bills - I transfered exactly the amount of the bills, then when it cleared sent the payment right off to the hospital. No chance of "accidentally" spending that money on something else.)

ING is not earning much interest right now (I think about 1.25%) so a CD might give you a better rate depending on the term. But ING is more easily accessible and won't incur any penalties for cashing out early like with a CD.

 

[purplegirl247]

Don't mean to hijack the thread, but question about what PP said. If you cash out a CD early, do you get penalties on the whole amount (i.e., you could conceivably get less out than you put in) or do you just not get as much interest or possibly any at all (but you would still get out what you put in)? I have an HSBC account and am about to look into CDs, but it's such a long-term thing...

 

[msmayor]

Don't mean to hijack the thread, but question about what PP said. If you cash out a CD early, do you get penalties on the whole amount (i.e., you could conceivably get less out than you put in) or do you just not get as much interest or possibly any at all (but you would still get out what you put in)? I have an HSBC account and am about to look into CDs, but it's such a long-term thing...

The answer...it depends on the terms of the deposit agreement with your individual institution.

Some banks may not credit the interest until the end of the term. Some will credit regularly. Some will charge a penalty equal to 60 days interest, some will charge 90. Others will not only take your interest but also take a penalty...so yes, theoretically you can indeed end up with less than you put in.

Banks take these "time deposits" because they then take the funds and lend them/commit them for other purposes knowing that you won't ask for the money back until the end of the term. If you cash it out early, there's a cost to the bank...because now money they counted on not having to pay out until later has to be 'found' someplace else.

CD's are fine for the safe, conservative investor. But if you even think you may need the money before the term of the CD is up, don't put it in a CD.

 

[prncess674]

am about to look into CDs, but it's such a long-term thing...

there are CDs with varying lengths. Some are years some are just months

 

[Ava]

there are CDs with varying lengths. Some are years some are just months

This is true, but the shorter term CDs may not get that much interest. I looked into CDs not too long ago and the rates for shorter terms (6 months to 2 years) were no better than what I'm getting from my ING savings account. If you can commit to putting your money into a CD for at least a few years you might get a good rate, but for me I feel more secure knowing my money is there for me if I need it.

 

[Cheshire Figment]

My favorite short-term investment (which is also very high risk) is Lottery tickets.

 

[nelson84]

Buy LVS(Las Vegas Sands), you will double your money in 6 to 8 months. They will be opening a new casino in mauca. the stock is around $21.86 right now should hit $45 in 6 months. I bought it when it was $1.80 and it just keeps going up. If you keep it for a year it will be around $60. It is an idiot proof stock. If you are into the stock market. Good luck with your investments.

 

[msmayor]

Buy LVS(Las Vegas Sands), you will double your money in 6 to 8 months. They will be opening a new casino in mauca. the stock is around $21.86 right now should hit $45 in 6 months. I bought it when it was $1.80 and it just keeps going up. If you keep it for a year it will be around $60. It is an idiot proof stock. If you are into the stock market. Good luck with your investments.

There is no such thing.

No one should EVER invest in any stock unless you fully understand the risks, and have an understanding of the financial condition of the company you are investing in.

One person's experience is not necessarily going to be the same as another's.

 

[minnie1928]

There is no such thing.

No one should EVER invest in any stock unless you fully understand the risks, and have an understanding of the financial condition of the company you are investing in.

One person's experience is not necessarily going to be the same as another's.

Totally agree. There is no way to predict what the price of a given stock will be tomorrow...much less what it will be in a year. I've got stocks that have grown over 100% in the past year, but it doesn't mean that they will continue at that rate. But if they did, I certainly wouldn't mind .

 

[5stljayhawks]

Heck,

if you are not in need of the cash, buy a 10 day none expiration pass, with park hopper.

you will gain 5-10% a year

 

[Mom2Ben02]

Buy LVS(Las Vegas Sands), you will double your money in 6 to 8 months. They will be opening a new casino in mauca. the stock is around $21.86 right now should hit $45 in 6 months. I bought it when it was $1.80 and it just keeps going up. If you keep it for a year it will be around $60. It is an idiot proof stock. If you are into the stock market. Good luck with your investments.

From Wikipedia...
Past properties

* The original Sands Hotel in Las Vegas - closed on June 30, 1996 and was demolished on November 26 of the same year.
* Sands Atlantic City - filed for bankruptcy in 1998; sold to Carl Icahn in 2000, who in turn sold it to Pinnacle Entertainment in 2006. Closed on November 11 of the same year, and imploded on October 18, 2007.
* Sands San Juan in San Juan, Puerto Rico opened in 1987 and closed in 1997, became the Grand Beach Resort and Casino and then became the Inter-Continental.

There is no such thing as an "idiot proof" stock. This is most certainly the case in the current economy. There is absolutely no guarantee that a new resort that is planned will do well - or even OPEN, for that matter.

 

[Tammi67]

Thanks for all the replies.

I'm not lucky enough to win the lottery, not savy enough to buy stocks, short term CDs are like .01% interest, and we already have APs.

I might as well just spend it frivolously.

 

[nunzia]

I have an ING savings account that works well for me. The money is not linked to my debit card from my regular bank, so in order to get access to it I have to request a transfer from ING into my checking account. It takes a few days for the transfer to clear, so I have to have planned in advance for that money. (Last year I had to use some savings to pay medical bills - I transfered exactly the amount of the bills, then when it cleared sent the payment right off to the hospital. No chance of "accidentally" spending that money on something else.)

ING is not earning much interest right now (I think about 1.25%) so a CD might give you a better rate depending on the term. But ING is more easily accessible and won't incur any penalties for cashing out early like with a CD.

I use ING too and I have a year long CD with them, so that's a good option too.

 

[nunzia]

Buy LVS(Las Vegas Sands), you will double your money in 6 to 8 months. They will be opening a new casino in mauca. the stock is around $21.86 right now should hit $45 in 6 months. I bought it when it was $1.80 and it just keeps going up. If you keep it for a year it will be around $60. It is an idiot proof stock. If you are into the stock market. Good luck with your investments.

ohhhhh..be careful. I worked at MGM Grand (who now own about 70% of the strip) and also have quite a bit (for me) of their stock. A Dubai group offered 85 a share at the height of the stock and after the crash it fell to $4.00..good for you for buying at the crash LVS, but no guarantee it will rise with the new casino. My MGM stock is now at 11.00. Still a far cry off what it was. Gaming stocks are pretty risky, just like the business they represent.

 

[bettymae1121]

If CD's aren't your thing and you're timeline is a bit longer, maybe look into some bonds. Bonds are low risk but you earn usually around 4-5%. As with any investment, do a ton of research and/or find a fee-based financial advisor to assist you.

 

[crisi]

Thanks for all the replies.

I'm not lucky enough to win the lottery, not savy enough to buy stocks, short term CDs are like .01% interest, and we already have APs.

I might as well just spend it frivolously.

Put it in a DIFFERENT bank. That's one of the benefits of ING, but I'll be one of those people that when I die, they'll be "finding" my money all over the place.

But there won't be much return on a short term, low risk investment - that's sort of the trade for low risk and short term.

With a little risk and the ability to ride out a down market, dividend paying stocks in decent companies can be fairly safe, but it doesn't sound like you want to be tied into riding out a down market or the risk. Read up on "dogs of the Dow" for one take on this.