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"$250,000 to invest short-term for a minor"
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You could invest in high yield trust deeds. These deeds are backed by real estate so their value can never diminish to zero. You can currently earn a safe 9-10% annual interest with your interest payments mailed to you or sent to a rollover account monthly. On a $250,000 investment at 10% interest, your monthly payment would be approximately $2,083 per month.
If you're investing on behalf of a minor, you could invest in your name with an F. B.O. (For the Benefit Of) in their name.
Trust Deed investment are usually for 1-2 year timeframes, but some can be extended. Visit here for more info: www.overlandfinancial.com
It depends on your time frame and what your goals are. Is it for education? If you need money for a short term goal - like paying for college in 3 years - you want to make sure you are in a fairly low risk investment. Even though the return is lower, you might want to be in something like laddered CD's or money market, because you don't run the risk of losing money.
- #3
- Posted: Oct 29, 2009 11:38 AM
Flag for inappropriate language - Mike M
- Mount Pleasant, SC
- View Profile
I would agree with the second response - if you are not willing or able to accept a possible decline in value, then you are best off with CD's. You could earn a bit more in various types of bonds or bond mutual funds, but you need to be aware that if and when interest rates rise, bond values decline, so it is not risk free... As for "high yield" investments, realize that the yield on risk free investments is very very low right now. You need to do your own homework and be educated on of how much risk you would be exposed to under what conditions, and how liquid are these, etc (trust deeds) . An alternative would be to mix and match different types of investments, that have different risk/reward characteristics, as opposed to putting all your eggs in one basket.
- Posted: Oct 29, 2009 11:38 AM
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What are some 3 yr short term investment options for $250,000 for a minor?