You may have some cash to spare for a little while and may want to put it to work. If you are looking for the best short term investments for that money, you may want to look at the following options. It may not give you the best investment rates, but it will give you a positive return.
So here is the skinny on short term investments. If you only have a limited time to place money somewhere, you want to make sure you put it in an asset class that won’t lose money. That is because you won’t have time to recover should your investments go down. Here are some of the best short term investments you can look at that probably won’t lose money in a short period of time.
The first and most obvious place is a savings account. You won’t lose money because the FDIC insures it up to $100k. They may even give you a small interest rate, but it may just be enough to cover inflation. So you won’t really make money, but you won’t lose it either.
Then you have a investments like CD’s, certificate of deposits. These give better rates than savings accounts, but it’s less liquid because your money get’s tied up for a period of time.
Some good stocks to invest in will be large cap stocks. These stocks are good for short term investments because they aren’t as volatile as small cap stocks. The share prices stay pretty stable and will keep you from losing a lot of money. But you may even make pretty decent rates if the economy is doing well. Depending on how long your short term period is, you may even be able to get some dividend income out of this category of stocks. As always, get professional advice before investing any money.