Options for risk-free investment or savings over one and two years?
I converted my IRAs to Roths last year, and with the extension of the tax cuts*, I've decided to split the tax burden over 2011 and 2012, even though I can afford to pay them for 2010.
Given that I have this money that is not really mine, what would be some options for risk free returns I could get for one and two year time windows?
*Of course, Illinois just raised state taxes by 2%, which might make paying it all off in 2010 more attactive.
(2)2 Comments
Sorted by latest first Latest Oldest Best
US government bonds and bonds issued by companies with a safe track record and consistently high ratings, for the past years, by credit agencies. But the time line of your investment, which is quite short, maybe a factor of choosing the right bonds. If you are not going to touch the money then CD maybe an option or an interest bearing savings account.
Money you need in less than 5 years should be saved not invested.
The only place I would be comfortable the money would be a money market account or Certificate of Deposit (CD). I usually go for the money market account because they pay at or close to CD rates and there are no restrictions on getting to the money. However in this case I might choose a CD to keep me from being tempted to borrow some of it for something else. But even after typing that I still think I would put it in a money market, because if interest rates rise they rise in the money market but not the CD, and I just don't think interest can go much lower.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2026 All Rights reserved.