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What is the best no risk investment I can make?

R

RedShirt

Golden Member
I have recently received some money that I would like to save. I am currently a college student and would like to use this money to help in a down payment for a house when I'm done with college or possibly help pay for a car (also when I'm done with college). Or of course I could use the money for loans etc. But I don't need the money until I am done with College.

The maximum I would like my money tied up is 5 years.

I've looked into many places to invest my money and ING Direct seems to have the best option that I can find. They have a 5 year CD that gives me 4% interest. They are also FDIC insured. Does anyone know of any better way to invest the money?
 
Originally posted by: RedShirt
I have recently received some money that I would like to save. I am currently a college student and would like to use this money to help in a down payment for a house when I'm done with college or possibly help pay for a car (also when I'm done with college). Or of course I could use the money for loans etc. But I don't need the money until I am done with College.

The maximum I would like my money tied up is 5 years.

I've looked into many places to invest my money and ING Direct seems to have the best option that I can find. They have a 5 year CD that gives me 4% interest. They are also FDIC insured. Does anyone know of any better way to invest the money?
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5 years if you really can't stand losing money that's probably the best way to do it. I'd almost put half in the market though into an index fund because I'd just HATE to see the economy take off over the next several years and lose out. I guess you can't have it both ways though.
 
z0mb13, I want a no risk investment. While mutual funds are considered to have low risk, you can still lose money on them. This is money that I want to be sure I have when it's time to buy a house.

Neonerd, is there a 5 year or less bond that would give me a 4% yearly return? Because if so, I would do that.
 
i wouldn't do a gov. bond since they don't pay out relatively quick. i think they are usually 10-30years but don't quote me on that.

a CD is probably your best bet.
 
no risk = mattress
really low risk = bank
low enough risk = money market account

ING Direct has a 5-year CD that is at 4%
 
Skoorb,

I do have some of my own money in the market. This money is a very generous gift from my grandpa that I want to put to use after I get out of college, so putting it in the market for a short time IMO wouldn't make much sense, especially since there is a potential for loss.

I do have money in the market for the long haul.
 
Originally posted by: konichiwa
no risk = mattress
really low risk = bank
low enough risk = money market account

ING Direct has a 5-year CD that is at 4%
Click to expand...

Wouldn't a bank have less risk than a matress? A bank is insured by the government. If, lets say, a fire broke out in my apartment, my money would burn up.

That ING Direct 5-year CD is what I'm thinking about doing, unless someone has any other advice.

Anyone know anything about I-bonds?
 
I'm talking about fiscal risk, not physical risk like fire or robbery. Any money you have on your personal possession (or in your house) is in less risk of being lost than any money you give away to anyone else, be it the bank or the government or ING or whatever.
 
Furthermore the good thing about the ING 5 year CD is if you take it out early the penalty is only half your accrued interest which gives you basically a 2% savings account or 4% if you don't touch it for 5 years.
 
Originally posted by: konichiwa
I'm talking about fiscal risk, not physical risk like fire or robbery. Any money you have on your personal possession (or in your house) is in less risk of being lost than any money you give away to anyone else, be it the bank or the government or ING or whatever.
Click to expand...
Yeah but since it is fdic it's totally gauranteed. If the government collapses and no longer gaurantees it, it's probably just paper anyway if it's under his mattress 🙂

 
The only 100% safe way is just to place it in a bank and let it collect a tiny bit of interest 😛

I say you go to your nearest casino and place it on black 😀
 
I think you are going with a good idea with that 5 year CD. that is a pretty good return for a CD right 4% yearly? you still paytax on that? or only when you cash it in?


However, I would argue that 5 years is enough time to be a little bit aggressive with it, in terms of putting it in a balanced mutual fund.. you should get around 6% yearly increase.
 
Put some in ING 5-yr CD. Put the rest on ING saving or other short-time interest-bearing account; you can use this money later for more aggresive investment or for emergency use.
 
Give me the money. There will be no risk of me returning it to you 😉

Savings account is lowest risk, IIRC, so long as it's federally insured.
However, other options (CD's, etc) are so low risk that the increase in risk shouldn't even be a consideration.
 
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