#1
|
|||
|
|||
noob question
I'm a recent college graduate with little knowledge about investing. I have about $5k in my savings account that I don't really need to touch. I plan on spending seven weeks this summer working at a summer camp where I'll make about $2,500 after taxes. during that time, I don't expect to touch the $5k, and after the summer I'll probably be using some amount of it to get an apartment/perhaps a car (depending on how generous my parents are).
my question is what kind of investment funds I can look into for a short-term investment like that. I would likely keep a fair amount invested after the summer, because my savings account provides dick for interest. I'd like a reasonable amount of liquidity (I have no idea what the standard is, but to be able to get my money in a week or so would be sufficient), and a minimal amount of maintenance. I have an index fund for retirement at an investment group which is ideal for long-term investments but this is very short term so I imagine it wouldn't be very wise to lump this money into that fund. |
#2
|
|||
|
|||
Re: noob question
If you put it in a stock, you can sell and have it out in 3 business days. You could also look at money market funds
|
#3
|
|||
|
|||
Re: noob question
What interest are you getting now? Look at ING direct for the best money market rates. Another option is a short (or ultra short) term bond fund. Unlike a money market where you are guaranteed your money back plus interest, a bond fund can flunctuate in value but should pay more interest. Shorter term funds have a smaller risk of price volatility. Longer term and lower quality bond funds pay higher interest rates, but have too much volatility risk. Whatever you buy, look at it's price history over the last few years to get an idea of what you're in for.
Putting it in stocks is a bad idea because of short term volatility risk. |
|
|