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| *Ostroff, Fair and Company>>>Personal Finance |
What is the best short term way to invest $50,000? |
What is the best short term way to invest $50,000? You could invest it in a money market account or a CD and make about $2500 in a year. If you'd like to make more than that, you have to take some risk. You could get the "Total Bond Market Fund" at Vanguard (code VBMFX) and probably make another $500 in a year. Or you could split it up amongst other index funds (a quarter each in VBMFX, VTSMX (the Total Stock Market Fund), VEXMX (the Extended Stock Market Fund) and VGTSX (the Total International Stock Fund)). The stocks have a higher typical return and taking four different broad funds mitigates some of the risk -- but you still could lose money. That combo is probably going to average 8 or 9%, but with a lot more year-to-year variation. So pick a level of risk. if you're young and wouldn't be bankrupted if you lost a few thousand dollars, then I'd take risk. Contact Vanguard (or Fidelity, or Schwab) and they'll be more than happy to help you out. Doug I could tell you - but I would get violated. (And not due to language or scams) The "best" is all relative. It really depends on what you are looking to accomplish and how much risk you are willing to take. And what is your definition of short term? how much risk do you want to incur? You could always do a cd or mutual fund, those would be between 6months to a year, not sure if that was short term to you or not. Get a certificate of deposit from a bank. You should not be investing in anything more risky than that. give it to me!! Six months is your objective a short term certificate or money market account, Remember LOW RISK |
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