Just got $120,000...how do I invest it safely for 1 year?

[pwd72s]

The sharks are circling...blood in the water soon...

[Jim Bremner]

t-shirts that say "vote fo' obama"

[RPKESQ]

What is your risk comfort level? What would you do if you lost a significant amount of your 120K? Like me know of your risk tolerance and I can direct you to an appropriate investment.

[kstar]

Alpacas.

[Dottore]

Buy a Euro-denominated blue-chip stock. Porsche stock for example.

[jrdavid68]

356 Speedster

[MRM]

Gold is at historic highs. So of course you want to buy now, when the market is at its highest, right?

Seriously, gold could go up more, but if oil has hit its peaks it's probably not going to. It could just as easily drop 20% in a year. That's twenty grand. Ouch!

You can buy Treasury bills or bonds through the Treasury Direct program. Specifically look into the inflation indexed savings bonds.

Otherwise, it's hard to beat CDs. Sure, they're at about the rate of inflation, but they're easy and convenient with no risk. Shop around for credit unions. They usually give better rates. Don't be shy telling the bank you have a hundred grand to invest and you'll put it where you get the best CD rate. My bank regularly gives me a half a point when I put money into CDs. With my business I have spikes in income followed by a few months of nothing but expenses and taxes, so when I get a big pyday I usually buy a CD. For a year's investment it's hard to do significantly better without taking on a lot of risk.

[tc-sacto]

Gold (gld) high in March of 100 now around 86 - 14% 120,000 now worth 103,000. Lost $17,000 in less than 3 months: how would you feel?
S&P 500 (spx) high in Oct of 1576 now 1377 -12.6% $120,000 now worth $104,880. Lost $15,200 in 8 months. How would you feel?

Neither one are at a high now as in the example, but the risk of a loss of that magnatude or worse is still the same.

There's a decent chance the EU central bank starts to lower rates driving the dollar up. This would not be good for commodities.

As said earlier, you don't have the time frame (1yr) for anything but CD's or a Money Market...from a company with no credit exposure(I.e. don't fall for teaser rates from someone like gmac)

[on2wheels52]

I buy/sell scrap gold every day but I don't have the nerve to sink $120k into it.
I'd be happy to sell you what I have on hand.
Jim

[red-beard]

Originally Posted by MRM

You can buy Treasury bills or bonds through the Treasury Direct program. Specifically look into the inflation indexed savings bonds.

That looks like a good alternative to gold. It will cover the inflation, which might cover you for some additional exchange rate issues, in the longer term. I suggested gold, since we are having an exchange rate issue right now. Of course, I was expecting it to reverse about now, but I expect it won't until after the election.

The exchange rate is killing a couple of our friends, who are having to sell US houses as they move back to Europe.

[schamp]

Take a look at AFLAC. Best stock I ever owned and still is. You might take a look at some tax free bonds if the time will work for you.

[Shadetree930]

Your answer is in the title of this thread .... How do I invest it SAFELY.

Like I said earlier, you don't have enough time for anything but CDs or a Money Market fund.

If you are really serious about getting a professional answer, see a financial planner (BTW, I promise you he is going to give you the same answer).

Remember, you are asking teh intarwebs for financial advice? You get what you pay for.

[Rot 911]

Another vote for short term CD's.

[The Gaijin]

vegas, hookers, lotto


I was laughing before I opened this thread!!

CDs, tax free bonds whatever!

Spend a little - have some fun..

[JeremyD]

Originally Posted by Wayne at Pelican Parts

Joint account in a CD. Keep it in short term CDs and renew 3-4 times, as rates are pretty poor right now. Check BankRate.com for the best rates. Make sure it's a joint account, so that you get $200K of FDIC insurance. You never know when a bank is going to fail these days...

-Wayne

+1 What wayne said - safe - you can renew - govt insured. IF you plan on using it as a down payment for a house.

On a different note - with 120k - I would look at some longer term investment vehicles - with the intention that I would use part of it for a down payment.

Fidelity Investments has a decent online investment set up - do some money market investigations - balance portfolio - like others have said - 1/3 or so in foreign blue chip -

[Dantilla]

I've got some cash on hand. It makes me sick how little is being earned in a Money Market account, but I want to keep it available as I have the antennas up for real estate bargains.

[Z-man]

If you are planning to buy real estate within a year, AND you know where you will be relocating to, why not look into investing in that real estate now? Prices aren't going to bottom out much more, and who knows, in a year, the market may pick up quite a bit. By buying now, you may be saving tens of thousands of dollars vs. buying next year.

Further - you can rent said house out for a year while still living in SoCal. You can probably cover your mortgage with the rental income. It's like not having to pay for your first year of mortgage! And you'll have a jump on having the mortgage paid off. (Side note: I'd suggest a 15 year fixed mortgage, and pay it off as soon as you can).

-Z-man.

[id10t]

CD, or perhaps just an IGN savings account if CDs are at 3%... IIRC IGN does 4% on savings...

[Porsche-O-Phile]

Originally Posted by Z-man

If you are planning to buy real estate within a year, AND you know where you will be relocating to, why not look into investing in that real estate now? Prices aren't going to bottom out much more, and who knows, in a year, the market may pick up quite a bit. . .

You're kidding, right?





Real estate is not going anywhere but down for at least a few years - and it will probably stay rather flat after that in virtually all markets.

If you want to throw your money into a guessing game as to which market might be the exception rather than the rule, go ahead, but I think there are way better things to be doing with your money.

There is some potential upside benefit in using real estate as an inflationary hedge (I believe we're headed for a double-digit-or-more inflationary cycle, even using the gubmint's "modified" inflation index numbers). Honestly I think the smart $$$ is in foreign markets right now, not the U.S. The U.S. is going to be a loser for a long time to come (again, some isolated pockets here & there will be exceptions, but overall I don't see much to be excited about, especially short-term). If I were a long-term investor (20+ years) I'd consider buying in the U.S., but for a short-term play? Not really.

[Sunroof]

Wife's a big honcho in banking......................CD for now. Safest, worry free bet. Deposit and forget it. I agree with Wayne on the joint account for the insurance.

or

Get compulsive and take a first class European vacation driving a rented Porsche!


Bob
73.5T