Investing and making money fast

Where can I get a high return on a short-term investment with limited risk? We're in an eventful time where the stock market is behaving like a schizophrenic and interest rates are at record lows — again. I've refinanced my house twice! Low mortgage rates are great, but how do you actually make money in the short-term? In such an unstable market, short term investing may be a safer alternative for investors. The typical short-term investment is expected to grow for several months to a few years, and can be turned into cash or other short term investments once they reach maturity.

There are various short-term investment accounts available to you, and which is right for you depends on your particular situation and preferences. Peer-to-peer lending websites allow investors to broaden their investment portfolio by spreading out the investments and reducing their risk. Investors purchase notes and receive a monthly income in the form of loan repayment and interest.

In the end, this can easily be a win-win for everyone involved. One such company, Lending Club , sets the interest rate on notes based on specific credit criteria. Lenders may start out small and increase the amount of money they are willing to lend as their confidence in the company grows.

Check out my review of Lending Club. Want to guarantee your investment will not lose any money while at the same time generating a little bit of a return?

The online high yield savings accounts are a great fit for that goal. Not sure where to start? The best online savings accounts are available at online banks like Discover Bank. While pursuing rewards may not automatically come to mind when you think of short-term investments, the signup bonuses that credit cards offer can actually be extremely lucrative.

Here's how it works: Are you with me so far? Think groceries, gas, and your regularly monthly bills. Then you'll simply pay off your card right away to avoid credit card interest. It's as simple as that. The thing is, there are so many ways you can spend 50, Chase Ultimate Rewards points. If this sounds good to you, check out Card Ratings to find and compare cards that offer up to 6 percent cash back.

But let me explain why one of my favorite retirement accounts also can work as a short term investing account. With all other types of retirement accounts — from ks to Traditional IRAs — you get hit with an early withdrawal penalty and income tax if you withdraw funds before retirement. The Roth IRA is different. Just remember, if you think you need you're money in the short-term, avoid the stock market for now. If you realize that part of the money can now go towards retirement, then you can shift it over.

Think opening a Roth IRA is complicated? In summary, a Roth IRA can provide a solution for individuals who crave the potential for higher returns but want the ability to withdraw their contributions if the really needed to. Banks offer a variety of terms for their deposit accounts, ranging from 3 months to 5 years.

Which length of CD will work best for you depends on your timeline and how long you want your investment out of your hands. The longer the term of investment, the higher the yield will be. A client wishing to receive monthly interest payments can elect to do so at the time of application.

However, most individuals who buy CDs let the interest accrue until the CD matures. The only downside to a Certificate of Deposit is the fact that, if you need to pull money out before the maturity date, you will pay a fee. The fee is usually equivalent to 3 months worth of interest, and that can take a huge bite out of your earnings.

You can get the highest interest rates for Certificates of Deposit at online banks like Compass Bank and Discover Bank. Investors familiar with the discipline of owning a CD can earn a similar return with a Money Market and still have immediate access to their funds.

Money Market accounts provide depositors with ATM cards, checks and deposit slips. Money Market accounts are based on the account balance, not the length of time you invest your money.

When CD rates begin to rise, clients can move their money from the Money Market without paying a penalty for early withdrawal. Looking for an online bank that does Money Market Accounts? EverBank is offering some of the best rates. Just like online savings accounts, an online checking account can also serve short-term investment needs. You get many of the benefits of an online savings account with even more liquidity because the number of withdrawals isn't limited.

Since you would be storing your money in a checking account rather than a savings account, you do take a hit on the interest rate. Looking for an online checking account? The best online checking accounts for interest rates are currently available from EverBank and BBVA. Short-term bond funds are products that are usually only managed by a professional financial advisor.

Bonds are not as stable as money markets, but they do offer the potential to earn a higher yield. These bonds are a product of the market and will pay out according to the market's current condition in fluctuating monthly payments. Short-term bonds usually mature in terms within 2 years or less, which can make them an ideal choice for investors with that type of timeline.

Short-Term BondsThere are three main short-term investments within the bond category, and each is one you could consider. Treasury Inflation Protected Securities, also known as TIPS, are government bonds that are indexed to inflation. The interest rate on a TIPS is fixed, but the underlying value of the security rises with inflation as measured through the Consumer Price Index.

You might only get 0. The end result is, at the end of the term, your initial investment will be worth as much as it was when you first invested.

However, you will earn a small bit of interest on top of it. You can buy TIPS directly from the government at TreasuryDirect. However, due to TIPS interest being taxable, most investors prefer to invest in a TIPS ETF or mutual fund.

To purchase shares of an ETF or mutual fund you will need a brokerage account. Municipal bonds are slightly more risky than TIPS and other Treasury investments, yet a majority of municipalities do not default on their bonds.

However, the decrease in the value of the bond only impacts you if you sell before maturity. If you're looking for short-term investments, you could buy a bond from someone else that was closer to maturity through a major brokerage firm. Likewise, corporate bonds are even more risky than municipals and Treasury bonds because they are not backed by a state, local, or Federal government.

The same interest rate risk issue applies to corporate bonds; holding to maturity will eliminate this one piece of risk. Looking for a great return on your investment? Pay off your high interest debt. Not only are you getting a great return on investment, you're saving money from future costs and bettering your overall financial situation. It's the ultimate win-win.

You can pay off high interest debt on your own. However, financial tools like Mint can help you manage your finances so you can see what kind of an impact your debt payoff is having. If you're paying a lot of interest right now, going through with a balance transfer can improve your finances and get you out of debt that much faster.

Prosper does not set a specific interest rate for borrowers. Instead, the website connects borrowers and lenders through online auction-style bidding. Borrowers list their loan and the highest amount of interest they are willing to pay. After that, lenders bid the interest rate down based on the lowest amount of interest they are willing to accept. This feature provides the stability of a predictable, high yield income on the notes.

If you need more info, check out our review post on investing with Prosper. If you're looking for a place to sock away some cash for the short-term, don't be afraid to think outside of the box.

Thanks to the constant evolution of the world wide web, you shouldn't have trouble investing your funds in any number of innovative online platforms. As I shared above, however, short-term investing is much different than investing for the long haul.

When you need to invest your money for only several weeks or months, you don't want to pour cash into investments that aren't easy to liquidate, charge fees for withdrawals, or are too risky for the short-term. How do you invest your dollars for the short-term? Have you ever used one of the strategies listed above? Our FREE Money Dominating Toolkit, and two chapters of my Best-Selling book: Soldier of Finance will get you on track to reaching your financial goals.

June 5, at 8: Excellent post, always Seeking for extra, I agreed with you and Looking forward to seeing your post. The information you have posted is very useful. Keep going on, Great Post. June 2, at 2: More way to saving money but a lot of confusion we need to be secure on investment rather than become a rich in less time. May 23, at 8: A great example of that is the Morgan Report by David Morgan and other financial gurus.

May 19, at 1: May 31, at 2: May 11, at But no one is willing to take on these prospects. May 15, at But one might be robo-advisors, like Betterment, Wealthfront or Personal Capital. May 7, at 5: Lending club has been my worst investment EVER. Mostly A and B loans. So far to date I am at 1. The vetting process and quality of loan is pathetic. Young and Finance says.

May 4, at 1: April 17, at 4: Hi Jeff, great financial tips. I was thinking of invest it in online GFX returns company, based in Chicago. How can I maximize this money? What would be your best advice to have this K maximized its earnings in a short term month, 6 month or a year period?

Please provide specifics type of invest where to invest this money. Your advice will be highly appreciated Thanks!

April 23, at Perhaps you can email me and we can discuss the situation in more detail? April 12, at 6: April 3, at 3: Few short term investments can equal that. The only problem is you have to physically handle the books unless you use a prep company. March 8, at 3: Most of these are hardly an investment.

One would be better to invest in something that at least keeps up with inflation! March 10, at 3: June 12, at 4: February 11, at 4: If your money is tied up how can you make money off of it? On , over a 1 year you make nothing! Use that 25k and invest in yourself.

I know I did it in With 25k my total investments throughout the year equaled over k. Stop letting people hold and make money off your money.

The 11 Best Short Term Investments For Your Money Today

Banks should definitely be coughing up larger percentages. Otherwise, do like some of the other people said, invest in assets that will hold their value, or in a market sense metals that increase in value as the dollar decreases. Unfortunately the metal markets are acting weird.

In fact none of the markets are following the laws of economics. Metals should be going down but they are going up. Silver and Gold should have been through the roof years ago. I personally doubt there will ever be a market correction as long as we have military and police that will do whatever their bosses say to whomever lol. Going to be an interesting year. December 11, at 6: Wonderful article, thx for your sharing.

I have K in my home loan offset account to offset the 4. Do you recommend me just leave it in the account or withdraw it to invest in something? If invest, what do you think would be a good choice for this amount of money? December 14, at 5: Sorry, but thanks for reading! April 20, at 4: Hi there, Im no money expert by any means, but I know exactly what youre asking Mia.

I do similar and have wondered the same at times but still think its one of the wisest things to do. It effectively renders my home loan interest free.

You should also still get tax benefits as it is an investment property. Sorry — i meant …. December 3, at 3: Can you give me a general idea of how the interest rates increase in relation to how long I hold the CD? Which investment do you recommend?

December 14, at 4: Hi Jim — The term spreads on CDs are narrow. Since the Fed is promising to raise rates several times in the current year, you may want to go with shorter terms, like 6 months or less, so you can take advantage of higher rates. Just be careful with this, since higher interest rates could be negative for stocks. Holding some cash outside a retirement plan going into retirement is never a bad idea. November 3, at I really feel disgusted. November 6, at 8: Much of the problem with returns will depend on how well the investment markets perform in the future.

December 15, at 9: Procter and gamble, johnson and johnson, coca cola, etc are the companies you want to be investing in. October 25, at 4: Enjoyed the video you posted as well. Currently still focusing on paying off some Student Loan Debt, but once I get past this I would like to find some short term investment options and these are some great ones.

Rajkumar Top 10 Binary Options says. October 21, at 9: First of all, thank you for sharing the short term investments tips, and I have noted them all to my helpful list to improve my investment ideas. October 7, at 1: October 12, at 6: The Green Swan says. October 7, at 9: My account is through an online bank that is FDIC insured and has no fees are minimum balances, etc.

That is about as good of a return you could expect from a savings account these days, and still provide you ready access when you need the funds for the house. Well done my friend! When it comes to investing money for the short-term your biggest enemy is greed! If you try to go for higher returns, you will add risk to the move, which could end up costing you more principal than you earn in interest.

Online banks are one of the best places to park money for the short-term, for all the reasons you report. July 13, at 9: How can I maximize this capital? What would be your best advice to have this 30K maximized its earnings in a year period? August 11, at 6: Hi David — My feeling is that if you think you will need the money within two or three years, then safety of principal is the real objective. Yes, you can do better with stocks, but you can also lose money.

September 22, at Jeff — Great article. I will definitely take you up on the CC awards tip. As others have mentioned, tax strategies to complement these tips would have made this article even better.

David — Jeff makes a great point in protecting your capital. So, if I were in your position, the first thing I would do is get out of the stock market.

Ways to invest money to make money fast

Next, I would take the money put into peer-to-peer loans and place them in a safer plan that my associates and I call a Bridge plan. The difference is that you are lending to investors in the commercial real estate world. This means that your loan is SECURED by a tangible asset i. These bridge plans are short term plans: Better than all the vehicles mentioned in this article.

If you want, I can give you a book for free about bridge plans. Click the link below and put your info. September 26, at 7: June 25, at 1: August 11, at 7: Hi Alexis — I covered corporate and municipal bonds in 9 in the article, and all the same rules apply to funds that invest in them.

Funds are good for small investors who want to diversify into bonds since you can do so with little capital. But just be sure that you know what the fund contains, especially the average bond maturities. The longer the maturities, the more risky the fund.

You have a better chance with funds that hold bonds that have maturities in under two years. June 2, at 9: My husband and I are trying to save as much money as we can for a down payment on a house.

We set a timeframe to save, and during that time we are trying to grow that money as well. Great tips, thanks for sharing!

May 16, at 3: Micro-lending also called peer-to-peer can reduce the risk of individual loans either by putting you into a pool, or by having you loan out multiple small amounts to various borrowers.

But there is still a lot of systemic risk, just like investing in a pool of junk bonds or sub-prime mortgages. These also mitigate the risk of individual borrowers, but sometimes they all or a great proportion go bad an once, like in So you need to keep that in mind.

An example is to upgrade the insulation in your attic, if it could use some. April 8, at 9: April 8, at Your contributions can be withdrawn at anytime without tax or penalty. May 11, at 5: August 11, at 8: You can withdraw your contributions any time without penalty. But the five year rule if for investment earnings, and you also have to be at least May 12, at 8: The way this is written suggests that whatever you take out is tax free.

May 1, at 7: Pay off your mortgage. Pay off all credit cards etc. Learn to avoid taxes and interest. Own cars that are paid off, low mileage but 10 years or older. Freeze Dried not Fresh.

Keep your head down. Keep a low profile. Keep your mouth shut. August 2, at 5: You nailed it bob , did exactly the same great idea , I have a lot of silver coins and only a little gold coins , own house , no debt , own 4 yrs old car!!!! But every time I buy silver and gold I think of that crazy little tune!!! April 5, at But it needs to be not just to be taken for granted because the money could not return to you.

In order to have this safe, you need to consult some professional field people with this. They could introduce to you on what should be the aspects of this. They could also lead you to many different forms. February 8, at 2: The CD would not allow that option, correct?

Time is not on your side. Time is of the essence. Act now but act with forethought — but act not react later. November 22, at December 15, at 7: November 17, at 9: Do you spread it out across multiple banks? September 17, at 6: Love the article and the video Jeff. Though you have provided a varied lost of investments than can be great for short term. However I personally prefer fixed deposits at banks and purchase of short term bonds.

The less the risk factor the better. I also prefer the lending to peers thing as its always better to help out! August 25, at 8: My son is having a baby and he has five thousand that he wants to invest in a short term investment for later down the road for the baby if has to get stuff do you have any suggestions thank you.

August 24, at 5: My son hads 5. July 13, at 4: How do you miss out of SIPC coverage by putting it in a Roth? By the way people some credit unions offer a fairly high yield, with no risk FDIC insured , on a portion of the balance. June 4, at Before food groceries or eating out and gas, I have approximately 1. Until my salary miraculously changes, is there something else I should be considering to lower my debt or help create a savings? April 8, at 6: This is horrible advice.

April 9, at 8: Misty The tax consequences from cashing out would only be on if there were any short-term capital gains. Dividends and interest are taxed normally. How is that horrible advice? March 17, at 8: What are the tax implications on investment income earned from LendingClub. April 7, at February 2, at Bonds are a good option but maturity is a big issue.

If the investor is going to need to sell the bonds before they mature, interest rate risk could be an issue. The point should be made to buy bonds that mature before or at the point the investor needs the money. January 15, at I have been keeping an emergency fund and saving up for medium term purchases with Smartypig https: I like how I can segregate money into different goals for planning trips etc. October 28, at 4: Jeff, thanks for this thorough and concise list — very helpful.

I just wanted to relay my experience with Lending Club to your readers. Defaults can quickly bring your interest down to zero. And loans last for either 3 yrs or 5 yrs, so that money is not accessible. I suppose you could invest a very large amount, and like an annuity, live off the proceeds for the next years.

September 27, at 1: I watched your Lending Club video this morning and was very excited to try this for myself with a minimal initial investment. However, as I was signing up for a new account, I was transferred to Folio where I am able to trade funds but not invest directly with Lending Club due to the laws in my state.

Do you suggest this approach or should I skip peer to peer lending for now?

October 15, at 9: I think it just makes it a little more difficult to find loans. September 7, at July 4, at 9: What do you think about investing in bitcoin?

16 Ways to Invest $ - Good Financial Cents

I just started researching on the internet and it seems like it is booming. August 3, at 8: June 13, at What is my best play? June 16, at Ken In a savings account, period. I would setup an account with Capital One or find a local bank that has a special promo on short term money. June 4, at 5: Been with them forever. What do you recommend?

June 24, at June 24, at 6: Thank you for your response, that is very helpful. March 16, at I have been taking my money out of the bank and just holding onto it to pay for a house or what not. April 7, at 9: January 9, at 2: I have recently becaome uneomployed.

I have a small savings plan with my former company as well a pension. I want access to the money to start my own business. I am 37 years old. I am trying to avoid as much penalty as possible. Best regards , Harold.

January 9, at 3: August 8, at 6: Jeff have you heard of rolling your k over to your retirement plan you setup with your company and using that money for the business? January 8, at Great article Jeff…I really enjoyed the video as well. Going to check out your review post on Lending Tree. September 13, at 2: Jeff, Love the video and the article. Also, like Dan mentioned, put as much as possibli into Govt I bonds.

July 16, at 6: Series I savings bonds make a good home for your emergency fund. But, for the subsequent 29 years, your money is easily accessible and keeping up with inflation. July 16, at 9: January 20, at January 21, at 5: Savings bonds can be purchased in two ways: June 10, at 4: I appreciate how thorough this list is. June 9, at Just some money in 2 savings account. I stick with ING direct for my short term emergency money. June 10, at 7: October 4, at 9: I have a online savings account at GE Capital Bank, easy to withdraw my money and the funds are in my checking account the next day.

Also the interest is compounded daily and is currently at. June 8, at 9: April 3, at 6: Your email address will not be published. Notify me of followup comments via e-mail. Make "cents" of your financial future. Get exclusive tips and practical tools to help you save easily, invest wisely, and earn extra money. Registration does not imply a certain level of skill or training.

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Start Here About Podcast TV Blog. The 11 Best Short Term Investments For Your Money. Our top picks for short term investments There are various short-term investment accounts available to you, and which is right for you depends on your particular situation and preferences. The best short term investments to protect your money and limit your risk: Lending Club Savings Accounts Cash Back Rewards Offers Roth IRA Certificate of Deposits CD Money Market Accounts Checking Accounts Short-Term Bond Funds and ETFs 5-Year Treasury Inflation Protected Securities Municipal Bonds and Corporate Bonds Pay Off High Interest Debt Bonus Idea: To make the most of an offer like this one, you'll want to meet the minimum spending requirement with stuff you were going to buy anyway.

There are few investments that will earn the high returns of paying off debt. There was an error submitting your subscription. What is the True Cost of Having Your Own Home? Reader Comments Gaurav Heera says June 5, at 8: One A share converts to 1, B shares if you want some of the money. It has the best Capital Allocator in the world ever.

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Hi Jeff, First of all, thank you for sharing the short term investments tips, and I have noted them all to my helpful list to improve my investment ideas. Emergencies can pop up when you least expect them! Any thoughts about corporate or municipal bond funds? Timeless and definitely going in my weekly Best Of roundup tomorrow. Hello Jeff, What do you think about investing in bitcoin?

Hi Jeff, I have been taking my money out of the bank and just holding onto it to pay for a house or what not. Going to check out your review post on Lending Tree Thx, Frank. Great addition to some short term investing options. Can you explain the best ways to purchase Series I Savings Bonds? When I do have extra cash laying around, I do want to give P2P lending a shot.

When it comes to short term investing, safety is the key! Microplace is no longer accepting new investments as of January 14, Leave a comment Cancel reply Your email address will not be published.

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