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good low risk short term investment for 100K

Posted on 1/3/15 at 8:21 am
Posted by BullredsRus
Baton Rouge
Member since Aug 2007
754 posts
Posted on 1/3/15 at 8:21 am
I have 100k that will be spent over the next 4-5 months on a renovation, and taken out in draws. I hate for it to just sit in a savings account. But I don't want to lose very much of it, if any. I'm not the most knowledgable when it comes to the stock market. Is there anything you would recommend to make even a small gain short term without the risk if a potential big loss? TIA
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 1/3/15 at 8:36 am to
quote:

Is there anything you would recommend to make even a small gain short term without the risk if a potential big loss?


Posted by bayoubengals88
LA
Member since Sep 2007
18916 posts
Posted on 1/3/15 at 8:37 am to
Vanguard bond index.

Here's the LINK
This post was edited on 1/3/15 at 8:39 am
Posted by white perch
the bright, happy side of hell
Member since Apr 2012
7131 posts
Posted on 1/3/15 at 8:38 am to
One word:

Iraqi dinar

Thank me later

Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80774 posts
Posted on 1/3/15 at 9:15 am to
You will be looking at less than 1% in 5 months for a low risk play.
Posted by Lsut81
Member since Jun 2005
80150 posts
Posted on 1/3/15 at 9:16 am to
quote:

One word:

Iraqi dinar

Thank me later


Posted by roguetiger15
Member since Jan 2013
16165 posts
Posted on 1/3/15 at 10:06 am to
Oil
Posted by bayoubengals88
LA
Member since Sep 2007
18916 posts
Posted on 1/3/15 at 11:02 am to
Oh, I thought he wrote 4-5 years!
Yeah, there's not much you can do.

Buy DBO and hope oil doesn't go any lower.

You can't elimate risk in a 4-5 month time frame. It's impossible.
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
27067 posts
Posted on 1/3/15 at 11:58 am to
Put it in an Ally savings account, get your 1% APY and like it.
Posted by I B Freeman
Member since Oct 2009
27843 posts
Posted on 1/3/15 at 12:54 pm to
Foolish to risk the money if you know you are going to need it in such a short period.

I agree with a savings account or short term CD.
Posted by I B Freeman
Member since Oct 2009
27843 posts
Posted on 1/3/15 at 12:55 pm to
i am interested in why someone would recommend a long bond fund now.

Rates can't go lower and seem headed higher making bonds cheaper.
Posted by RadTiger
Member since Oct 2013
1121 posts
Posted on 1/3/15 at 1:03 pm to
gold plated soybeans
Posted by bayoubengals88
LA
Member since Sep 2007
18916 posts
Posted on 1/3/15 at 1:59 pm to
quote:

i am interested in why someone would recommend a long bond fund now.

Rates can't go lower and seem headed higher making bonds cheaper.


I read a book that promotes ~70/30 stock/bond allocation with annual rebalancing. That doesn't mean I understand how bonds work. Thanks for the insight.
Posted by LSU1018
Baton Rouge
Member since Feb 2007
7220 posts
Posted on 1/3/15 at 3:39 pm to
I would spread it between a few rewards checking accounts. UCB offers like 2% on up to 25,000. I think Dow Credit union offers 3% but only up to 10,000.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 1/3/15 at 5:15 pm to
As rates go up bond values fall. The longer the bond the more volatile. Certain types of bonds react differently but the vast majority behave this way.
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