So I want safe, short-term investment advice.

I have just over $10,000 I’d like to invest in a safe, short-term investment, but I have no idea how.

I’m talking about investing it for about a year, but with the option of going longer if I can. I need to be able to pull it out at any time in case of emergency(thought that part is not required).

Can any helpful Doper give me advice, tell me the common way people do this kind of thing, or tell me where online I can get this basic kind of advice?


There are tradeoffs: safety vs. yield is the big one. If you want safe, put it into a bank account: a CD if you don’t plan to use the money, a regular account if you may need it.

For a little better yield, there may be a bond fund. I’ve used the funds at Vanguard – they are relatively safe and you can access the money at any time. Their web page may give you some ideas as to what is good, and there are other companies that perform the same service.

You could put it in an ING Direct savings account. That is very liquid and very safe – a certain 2.2% return. Some other savings account might give a better return but I haven’t done any research lately. A 1-year CD will get you a few tenths more, but you will be penalized if you take it out early. Stocks are not a good choice.

If you carry a balance over on your credit cards, pay that off first. You get about a 20% return on that money, for interest you would have had to pay.