I want to invest 10000 dollars but I will need access tot he money in 1 year what is my best investment choice
Question:
Answer:
If you need access to your money in 12 months then you have to put it in a 12 month CD. If you put it in stocks or similar you may make more money but you also may lose 50%. Stocks are very volatile in the short term but much less so over the long term 5-10 years.
Personally, I have the same issue, and I find that some internet banks (emigrantdirect.com, INGdirect.com, etc) offer about 4%, which is comparible to CDs, but without the withdrawl restrictions. This is my suggestion to you.
I would go with a reputable money market fund from Vanguard or Fidelity. They both have funds yielding over 4% and in a rising interest rate environment I think you will do better than a one year cd.
my suggestion would be T-Bills. They are sold in 1,000 increments for periods as short as one month.
treasurydirect is the site, think .gov is the ending.
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