What can i put my money into for the next 2 years? i will have more and more money each month to invest.?
what kind of interest rates could i be looking at? are there professionals i could talk to to develop some kind of financial plan with?
Answer:
If you need this money in 2 years, your prudent choices are limited to money market accounts, CDs and T-bills/notes up to 2 years in duration. A 5.35% APY is achievable right now in CDs with some digging.
Stocks and long-term bonds are too risky for a 2-year investment.
Fee-only certified financial planners (CFPs) should be able to help you, but check their prices.
1 yr CDs are about 5%, a lot are 5.5%, which is pretty decent AND you're not locking your money away for too long.
I would suggest finding a interest checking account and linking that to a higher yield savings account (such as Ing or Emigrant). That way you can transfer money to whichever account needs it.
If you want to invest in stocks, try Sharebuilder.com or Buyandhold, both have minimal transaction fees.
Go to www.bankrate.com for lots of good info.
Corporate bond is very safe- moderate return.
You can make your own portfolio of unit trust
and save management fee. But need to do lot
of homework - some risk.
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