short-term investment Archives

For many, knowing where to invest their money can be nerve-wracking, especially if it’s in a long-term account that they can’t immediately access without facing fees or penalties. Fortunately, there are a variety of short-term investments that you can consider to grow your wealth and withdraw from in a shorter period of time.

Knowing what the best short-term investments are is hard, as it depends on current market conditions and your own financial goals. Today, short-term investments are even more challenging to understand as the COVID-19 pandemic is causing market conditions to fluctuate. However, there are a variety of short-term investments worth considering. Below, we’ll cover short-term investment examples throughout this post to give you a greater understanding of your options.

Read end-to-end to explore what short-term investments are available to you, or browse different short-term investments using the links below.

What Are Short-Term Investments?

You’ve probably heard the term thrown around here and there, but what are short-term investments? The short-term investment definition considers short-term investments, also referred to as temporary investments or marketable securities, as investments that can produce returns quickly, usually in 5 years or less.

People may place their money in short-term investment vehicles if they need their money to grow by a certain time. Unlike long-term investments like stocks and mutual funds that are riskier and can drop in price from bear markets, short-term investments are often safer, as the risk of losing gains is often lower.

There are a few reasons why someone may want to invest in short-term securities. For example, if you’re planning your wedding or hoping to place a down payment on a new home, you might consider short-term investments to grow your money and have access to it in a shorter period of time.

Another reason someone may become a short-term investor is because they want to take advantage of rising interest rates within a short period of time. While this strategy can be difficult, those knowledgeable on short-term investing can earn profits off of their marketable securities.

Common types of short-term investments include savings accounts, money market accounts, certificates of deposit (CDs), Treasuries, bond funds, peer-to-peer lending. In the next section, you’ll learn more about each of these types of short-term investments.

Types of Short-Term Investments

There are numerous short-term investments you can place your money in with hopes of gaining a return. Knowing how to start investing can be confusing, especially if it’s your first time and you know little about different types of investment vehicles. Below, we’ll cover some of the best short-term investments you may want to consider in 2020.

1. Savings Accounts

When you get paid, you most likely place your earnings in a bank account. There are two main types of bank accounts: checking and savings. Checking accounts are great for everyday spending, as you can withdraw funds for bills, groceries, and other transactions whenever you please. This is because checking accounts usually earn little to no interest.

Savings accounts, on the other hand, can earn interest. There are plenty of savings accounts where you can store your money, and one option is a high-yield savings account. High-yield savings accounts often offer high interest rates, which can earn you money over time. However, they usually place limits on how many withdrawals you can make each month – usually six. Savings accounts are FDIC-insured up to $250,000, which will protect your money in the event of a market collapse.

If you have robust savings or an emergency fund sitting around in a checking account earning no interest that you don’t plan on withdrawing from in the near future, you may want to consider placing your money in a savings account. Doing so can earn you more money in interest each month.

2. Money Market Accounts

A money market account is a high-interest earning account that typically pays a higher rate than a traditional savings account. However, these accounts often require a minimum investment, which means you may have to put down a sizable chunk of your savings to open one of these accounts. Money market accounts, similar to checking accounts, saving accounts, and CDs are FDIC-insured up to $250,000.

It’s important not to confuse money market accounts with their riskier counterpart, money market mutual funds. Money market mutual funds, which are not FDIC-insured, invest in debts and short-term maturities of less than one year.

3. CDs

Certificates of deposit (CDs) are a savings instrument that lock your funds for a fixed period of time. While locked, the bank or financial institution that offers your CD will pay a fixed-rate interest for the duration of the CD. Typically, the longer your CD term, the higher the interest rate you’ll receive. CDs typically offer higher interest rates compared to savings accounts and money market accounts. You can choose terms that can range from 7 days up to ten years. However, the most common CD terms are six months, one year, or five years.

When you open a CD, you typically agree to keep your money held in the account for the specified amount of time. If you withdraw money from your CD before it matures, you can face an early withdrawal fee or have to forfeit a portion of the interest you earned. Another drawback is if you tie your money up in a CD, you can risk missing out on another opportunity that offers a higher rate.

4. Treasuries

The U.S. Treasury offers a variety of securities you can invest in and grow your money. Some of the most common treasuries include:

Treasury Notes (T-Notes): Issued with maturities of 2, 3, 5, 7, and 10 years and pay interest every six months

Treasury Bills (T-Bills): Short-term securities that are sold as a discount from their face value and have maturities that range from a few days to 52 weeks

Treasury Bonds (T-Bonds): Long-term investments that pay interest every six months and mature in 20 or 30 years

Floating-Rate Notes (FRNs): Issued for a term of 2 years with interest being paid quarterly, with interest payments rising and falling based on discount rates for 13-week Treasury bills

Treasury Inflation-Protected Securities (TIPS): Marketable securities with maturities of 5, 10, ad 30 years with interest being paid every six months with the principal adjusting by changes in the Consumer Price Index

Besides Treasury Bonds, these Treasuries are all backed by the U.S. government and are short-term investments worth considering.

5. Bond Funds

Bond funds invest in a pool of bonds, such as corporate, municipal, and government savings bonds. Ultra-short bond funds are similar to mutual funds. However, instead of investing in a pool of stocks, they’re investing in a pool of bonds with short durations.

In short, a bond is a loan to a government or business that pays back a fixed rate of return. They are generally safer than stocks, but still pose risks, such as a borrower defaulting.

When it comes to bond funds, you might want to consider investing in ones that primarily own government bonds. This is because government bonds are usually less risky than corporate bonds and have a lower chance of defaulting because they’re backed by the government. Bond funds are a viable option if you’re looking for a short-term high-yield investment. Additionally, you most likely won’t face a penalty if you withdraw early.

6. Peer-to-Peer Lending

Peer-to-peer lending, or P2P lending, is an avenue for small businesses and individuals to access capital through the internet. P2P lending is similar to taking a loan out from a bank, but comes from a peer instead, such as your neighbor, family member, or friend.

To get started in peer-to-peer lending, you first need to join a lending platform and decide what types of loans you’ll offer and the risk you’re willing to accept. From there, you’ll be able to pick and choose borrowers based on their creditworthiness and begin making money through interest.

With P2P lending, you can often yield greater results compared to savings or CDs. However, a drawback is that P2P lending isn’t FDIC-insured, which means it can be a risky investment if the borrower defaults and can’t pay back your loan.

7. Roth IRAs

Saving for retirement is a common goal for many individuals. One way to save for retirement is with an individual retirement account, such as a Roth IRA. While the initial purpose of a Roth IRA is to save for retirement, it can be used as a short-term investment. Unlike a traditional IRA, Roth IRAs allow you to make withdrawals without facing a penalty or having to pay taxes on your contributions. Any gains, however, can face taxes and penalties if you withdraw early.

Investment Options for Short-Term Money

There are numerous investment options for short-term money at your disposal. You don’t want to fall victim to common investment mistakes like buying a security without doing your research. Refer to the chart below to view a side-by-side comparison of common short-term investments.

Key Takeaways on Short-Term Investments

If you’re looking to grow your money in a short amount of time, short-term investments might be the option for you. Here are some key takeaways on short-term investments:

Short-term investments are investments that can produce returns quickly, typically in five years or less.
There are numerous short-term investment examples, such as savings accounts, money market accounts, CDs, Treasuries, bond funds, peer-to-peer lending, and Roth IRAs.
The best short-term investments are those that match your financial goals. It’s important to do your research to find a short-term investment that works for you.

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Life insurance is an important component of any good financial plan. Choosing a company like Jackson National Life Insurance can help you to protect the assets that you have built, in addition to the people that you love.

Jackson National Life Insurance At A Glance

Premiums written	21,511,557
Financial Strength	A from A.M. Best.
Year Founded	1961
Coverage Area	Nationwide
HQ Address	1 Corporate Way Lansing, MI 48951
Phone Number	1 (877) 565-2968

Get started with Jackson National Life Insurance today!

Jackson National Life Insurance Company Information

The firm currently consists of three separate entities, including Jackson National Life Insurance Company, Jackson National Life Insurance Company of New York, and Brooke Life Insurance Company.

When it comes to being secure and stable for a long time you want to make sure an insurance company has plenty of assets to cover claims. Jackson performs well here too and their leaders understand that staying in business it’s important to have large assets.

As a subsidiary of Jackson National, Curian Capital, LLC, manufactures and distributes a very comprehensive suite of various investment strategies and asset management solutions for institutions, advisors, and their clients. This company uses a highly technologically advanced platform for doing so, which can, in turn, assist advisors in terms of efficiency and profitability.

It can also help clients with a very highly customized investment management solution for their financial and retirement planning needs.

Another Jackson subsidiary, Jackson National Asset Management, LLC, provides investment advisory, transfer agency, fund accounting, and administration services for funds and separate accounts that support Jackson’s variable products, and employee 401(k) plans.

National Planning Holdings, Inc, a network of four independent broker-dealers, consists of the following:

INVEST Financial Corporation
Investment Centers of America, Inc.
National Planning Corporation
Sll Investments, Inc.

Financial Strength

Jackson National Life Insurance Company garners high remarks from the insurance company rating agencies. These include the following:

An (Excellent) from A.M. Best. This is the third-highest rating out of 16 rating categories.
AA (Very Strong) from Fitch Ratings. This is the third highest out of 19 rating categories.
AA (Very Strong) from Standard & Poor’s. This is the third highest out of 21 rating categories.
A1 (Good) from Moody’s Investors Service, Inc. This is the fifth-highest out of 21 rating categories.

Jackson National Life Insurance Products

Contrary to the name of the company, Jackson National Life Insurance does not offer life insurance policies. Jackson National instead offers fixed, fixed-indexed and variable annuities.

The products are sold through 2 outlets, including Jackson National Life Distributors, LLC, (JNLD), and the Institutional Products department. JNLD handles the Jackson National retail products – including annuities – to both independent and regional broker-dealers, warehouses, independent agents, and other financial institutions.

The Institutional Products department at Jackson National sells medium-term notes, funding agreements, and guaranteed investment contracts – to banks, investors and pension providers.

Fixed Annuities

A fixed annuity will offer its owner a fixed amount of interest that is credited on an annual basis. The key benefit with fixed annuities is the safety of the principal that they allow their owners – along with the satisfaction knowing that they will not be losing the money that they have oftentimes worked a lifetime to save. The tradeoff for this safety, however, is that the return on fixed annuities is somewhat low.

These types of annuities will offer their holders a fixed income stream – and, for those who choose the lifetime income option, they can offer a guaranteed income for the remainder of the individual’s life, no matter how long they live. This can be a great way to ensure that a retiree does not outlive his or her assets – especially given that life expectancies are so much longer today than ever before.

Jackson National sells 5 different options:

MAX Family
BonusMAX
Action Family
SuperMAX Family
Immediate Annuity

Each of these is slightly different in how they operate and how they should be used. Some of them are for longer investments, while others are more of a short-term investment.

They also sell some fixed index annuities as well. Fixed indexed options offer stable returns without the risk of other investments.

Variable Annuities

A variable annuity works like a contract between an individual or business and an insurance company, under the terms of the contract insurance company will make periodic payments to the annuity investor, beginning either immediately or at some future date.

Variable annuities are also considered to be tax-deferred investments, meaning that the contract owner pays no taxes on the income and investment gains from the variable annuity until they withdraw the money.

Variable annuities provide the opportunity for market appreciation through a number of different investment options. They also provide for the tax-deferred accumulation of funds, and future income. Variable annuities offer numerous benefits including, tax-deferred growth, the opportunity for market appreciation, liquidity, benefits to spouses, and benefits to heirs.

Variable annuities may also have an optional life insurance provider that offers a death benefit.
If the annuity contract owner passes away prior to the time that the insurance company has begun making income payments to the annuitant, then a named beneficiary will be guaranteed to receive at least a specified amount of money, which is generally the amount of the purchase payments, or the total amount of the premiums that were deposited.

Variable annuities are designed for people who may be willing to take more risk with their investment in return for more growth potential. Historically, variable annuities have offered better returns than fixed rate annuities. However, it is important to keep in mind the added risk associated with this product.

With Jackson National, they have four variable annuities options:

Elite Access
Elite Access Advisory
Perspective II
Perspective Advisory

The Elite Access, Perspective II, and the Perspective Advisory allow people who are older to invest in an annuity. The Elite Access allows anyone who is up to 85 to invest. The Perspective Advisory has a limit of 85 as well, and the Perspective II has a higher limit of 90-years-old.

Each of these annuities has different advantages and limits. If you’re looking for annuities, then Jackson National can be an excellent start to your search.

Fixed Index Annuities

Jackson National also offers Fixed Index Annuities. A Fixed Index Annuity is a great option if you want steady growth without having to risk it all on the fluctuations of the market.

With Jackson National, they have four fixed index annuities options:

AscenderPlus Select
Elite Choice
Elite Choice Rewards
Select Annual Reset

The AscenderPlus Select option includes all classic annuity options such as fixed annuity benefits and a death benefit. In addition, this annuity also offers an optional income rider which can be attached for a charge.

Elite Choice offers additional interest linked to a single index. Elite Choice Rewards is a step up from the Elite Choice and offers regular 2.5% or 5% increases to the value of your annuity.
The Select Annual Reset is created to build a retirement fund linked to one of two indexes.

How Does Jackson National Compare?

How does Jackson National Insurance compare to other popular insurance companies? Check out this table where we compare Allstate, Have Life and Met Life.

Company	Best For	J.D. Power Score	A.M. Best Rating
Jackson National	Claims Paid	N/A	A
Haven Life	Quick Coverage	751	A++
Met Life	Variety of Policies	744	A+

While all three of these companies are very compatible, it is important to note that Haven Life offers only term life insurance.

For more information, you can check out the individual reviews of Haven Life and Met Life.

History Of Jackson National Life Insurance

Jackson National Life Insurance Company has been in business since 1961. The company is headquartered in Lansing, Michigan, and it was named after President Andrew Jackson, the seventh president of the United States. The firm primarily offers retirement annuities and investments.

Just twenty years after opening its doors, the company went from $50 million to more than $160 million in just annuity sales, and by 1989, its sales exceeded $2 billion. In 1998, National Planning Holdings, Inc. (NPH) was formed, and that same year, Jackson National Life Insurance Company of New York was opened, which expanded Jackson National’s sales and distribution to all 50 of the U.S. states.

The company has continued to expand throughout the years, and in 2003, it launched Curian Capital, LLC, a separately managed accounts provider. Just two years later, in 2005, the firm acquired Life Insurance Company of Georgia, which essentially doubled the company’s policy count to approximately 3 million.

Summary

Wanting to jump-start the application process? Our quote calculator is geared to find the best result for you. It’s quick, simple, and you can do it from the comfort of your own chair. To commence you need to complete the form on the right side of our website.

Should you discover that you have any additional questions as you move through the process regarding Jackson National Life Insurance Company – then you have come to the right place. Our advisors are here to serve you and can answer the questions and concerns that you may have.

We can also show you how the quoting process works, and give more focus on the details such as what type of life insurance policy is right for you, how much death benefit coverage you need for your survivors and their needs, and which of the many available life insurance carriers will be able to serve you best.

There are so many details to keep track of and the application can get tiring. That is why we got into the insurance business. We love helping people figure out the best way to protect their families.

About the Author

Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.

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March 9, 2019 Posted By: growth-rapidly Tag: Financial Advice

There are times you don’t need the help of a financial advisor to achieve some financial goals. For instance, some thing as simple as saving money to buy a house can be done on your own. However, there are some turning points in your life when consulting with a financial advisor may be helpful.

For example, you might be thinking about starting a family soon. You might be thinking about retiring early. Or your finance might just be a mess and needs some direction. If any of these situations below apply to you, then you may need to work with a financial advisor.

Find out now: How to Find an Advisor in Your Area.

Before we delve more into the topic, what is a financial advisor? In other words, what does a financial do?

A financial advisor (sometimes known as financial planner) is a licensed professional authorized to help you make major financial decisions in order to reach your financial goals. They help you with all types of financial planning like budgeting, retirement planning, investing, tax planning, etc. The advice can be a simple, focus on one aspect of your finance (for example, the best way to save for retirement). Or it can be general advice, involving a comprehensive plan to help you set financial goals.

If you’re looking for a financial advisor in your area click here.

1. You’re planning for retirement.

Perhaps the best time you need to consider hiring a financial advisor is when you’re approaching or planning for retirement. It is so because a bear market could come just as soon as you retire leading you to lose most if not all of your money. Your investment portfolio may not be well balanced.

A professional can help you balance your investment portfolio, making it more conservative. That means allocating money to different stocks, bonds, mutual funds, etc. That way you don’t to stand to lose all of your money in a bear market.

Another reason why you need the help of a financial advisor is that you may outlive your money. The average life expectancy is around 90 to 95 years. So there is a chance you might live to 30 years after you retire at 65. A financial advisor can come up with a plan to help you generate extra income to prolong the life of your retirement portfolio.

Related: 5 Reasons Why You Will Retire Broke.

2. You’re ready to invest.

Investing can be intimidating for most people. A financial advisor can help you with developing an investment plan. While sometimes you don’t need one to invest, but if you’re a beginner and don’t know what you’re doing, it makes sense to have someone with more expertise in the area.

A financial advisor can help you identify short term and long term investment goals that you alone may not have thought about. A short-term investment goal can simply be paying off your credit card bills to free up some money.

That extra money can be deposited into a safe investment such an high interest online savings account. A long term investment goal can be investing in retirement, tax-deferred account.

3. You’re starting a family.

Another sign that you need a financial advisor is when you’re planning for a major life event like starting a family. While exciting, starting a family can be very expensive. You have to think about childcare, housing expenses, medical expenses, mortgages. Moreover, if you something were to happen to you, you would want to make sure that your spouse and/or your children are financially protected. That means you have to make sure you have a health insurance and life insurance.

So if you’re planning to start a family, now is the time to sit down with a financial advisor to discuss the right insurance polices that is right for you; to discuss savings/trust funds for your children’s education, and so on.

4. You have a lot of Debt.

You can probably handle having a few thousands dollars in credit card debt or other forms of bad debt. But if you’re dealing with hundreds of thousands or millions in debt, get advice from professionals who have helped others in similar situations.

A financial advisor can help you make a budget and set up a repayment plan to pay off your debt. They can help you find extra money in your budget that can go towards your debts. So, if you’re having trouble paying your bills or need to sort out your debts, you might need to seek professional advice.

5. You’re building a business.

Investment or retirement advice is not the only thing financial advisors are equipped to do. Many are also capable to give you advice on your business needs. If you’re just starting a new business, an advisor can offer you financial advice on how to structure your business, the type of business to form, etc…

So consult with a financial advisor now so you can reach your financial goals.

Read More: 5 Mistakes People Make When Hiring a Financial Advisor.

Additional Money Tips:

1.If you’re interested in earning passive income, then you need to create your own blog. It’s one of the best ways to make a lot of money. Starting a website with Bluehost takes less than 15 minutes and hardly costs anything. And there are several ways to monetize your website.

Read our step-by-step guide on how to start a successful blog in 15 minutes. It’s one of the best passive income streams you can have.

2. Second, If you’re thinking of buying a house, estimate how much you may be able to borrow. Get pre-qualified.

3. Open a high yield savings account. Having an online, high yield savings account allows you to save money and earn over 15 times the national average in interest. Check out CIT Bank online savings account, which has a 2.45% APY. Learn more.

4. Connect with a financial advisor. Getting financial advice can help you plan and manage your saving goals. This tool here will match you with up to three advisors after you answer some questions.

Source: growthrapidly.com

You may have heard stories of people cleaning out attics to find older comic books they then sold at a hefty profit.

That does happen — but it’s not just older books that are becoming valuable. Even comic books from the last 20 years are becoming more collectible. Some have jumped in value from just a few dollars five years ago to over $2,000 today.

Smart investors are finding they can make money off of this trend, but only if they treat it like they would any serious investment.

I started investing in comics in the mid-1970s with the change I could find in the cushions of our couch. Through careful savings and picking the right comics, I invested and parlayed my profits into bigger and bigger purchases. Here’s my advice for anyone looking to get started.

How to Get Started With Comic Book Investing

The idea of comic books as an investment first picked up steam during the 2008 recession. Between the turbulent stock and real estate markets and next-to-nothing interest rates offered by banks, people had to come up with creative ways to invest and make money.

Many people did, and continue to do, well by investing in comic books, but it’s not like throwing a dart at a dartboard and hoping for the best. To make a profit on what some still think of as “kiddie fare,” you have to act like a kid in school and do your homework.

1. Learn Everything You Can About Comic Books

The first step is to learn everything you can. Talk to experts. Follow auctions on sites like ebay and ComicConnect to see what’s selling and for how much. [Editor’s note: The author is the owner of ComicConnect.] Study the trends, such as a surge in popularity due to a character being featured in a new movie or TV show.

And, most importantly, know your superheroes. Comic books are about more than the “blue chip” superheroes: Superman, Batman, Spider-Man and the like. Expanding your knowledge beyond the big names can make you a savvier investor. For example, some heroes from the Golden Age (1930s-1950s), such as Catman, Black Terror, The Destroyer and Phantom Lady are very popular, despite the fact that they’re no longer in publication.

2. Decide Your Budget

The next step in investing is to decide on your budget. There’s room in the market for small and large investors alike, and that can mean anything from $10 to $3 million.

When figuring out your budget, determine how many comic books you want to buy per year, and how long you want to hold onto them. I recommend putting together a “want list” of the comics you want to buy and grades you want them in. You can then look at current market prices by using the Overstreet Price Guide, gpanalysis.com and gocollect.com.

I also like to leave about 10% of my budget for something that catches my eye — and something always catches my eye!

3. Start Buying — But Do Your Due Diligence

Before the pandemic, I would have suggested attending comic conventions to find comics for your collection, but now your best option is to check out dealer and auction sites.

For instance, my company ComicConnect holds four event auctions a year, featuring a wide range of vintage comics, original art and other collectibles. We also host monthly auctions, where you can find more great comics.

Many other sites sell comics, but it’s important to find reputable sources that will stand behind what they are selling. Accurate grading and a return policy are important.

And if you’re considering getting into selling your comic books, be prepared to answer a lot of questions from seasoned collectors.

Is This a Long-Term vs. Short-Term Investment?

Consider whether you want to invest for the long or short-term. Long-term investors should select comics that have traditionally shown slow, steady growth. For example, people who bought a copy of “Amazing Fantasy 15” (the first appearance of Spider-Man) for $3,000 in 2010 own a comic book that’s worth $10,000 today.

For long-term investors, pre-1985 books are the best choice. These comics have shown they have legs to them, and by the time they’ve been around that long, they’ll have hit vintage status. There are plenty of modern comics from the last 20 years to read, collect and invest in, but the market for those books can be a bit more volatile.

For short-term investors, it’s all about timing. Try to buy books when they just start to get hot with the intention of selling them quickly before interest wanes. There are comics that have only been out for a few months that are selling for anywhere from $50 to $100.

But remember, the short-term market can be very volatile. For example, investors who bought “Green Lantern 7” a year before the “Green Lantern” movie came out saw huge profits if they sold within a few months. But if they waited until too close to the premiere of the movie — which totally flopped — they probably lost money.

Nobody wins all the time, not even experts like me. I was one of the guys who bought a high-grade “Green Lantern 7” the week the movie came out. I ended up taking a small hit when I was eventually able to sell it a few years later.

A man looks at a Superman comic at his comic book store in NYC. — Vincent Zurzolo, COO of Metropolis Collectibiles Inc., looks at a copy of the first Superman comic book he’s offering for sale at the Big Apple Comic Con, in New York Friday Oct. 16, 2009. Richard Drew/AP Photo

Some Tips for Identifying Potentially Valuable Comics

Whether investing in new or older comics, there are a few general rules you can follow to help determine whether a comic will increase in value.

Issues that feature a character’s first appearance or death, or an artist or writer’s first professional publication, are more likely to be good investments down the road. Individual pages from Action Comics 1 (Superman’s first appearance, in 1938) have sold for tens of thousands of dollars.

But it’s not just the big names that can prove valuable. It’s just as possible that the first appearance of a character in a low-grade comic can provide substantial returns one day. It’s a gamble, but one that could potentially pay off.

Remember, though, it’s not just a comic book’s significance that determines its value. Condition and rarity also have an impact. But nothing is set in stone. If there’s one copy of a book in near-mint condition but five more are found a year later, the value of that issue could drop.

Once you jump into the comic book market, remember to protect your investment. Store books in a cool, dry place, such as a safe deposit box.

Finally, use professional appraisers and consider purchasing insurance for your collection. A quick search of your comic’s name and issue on reputable auction sites can help you gauge your comic’s value.

Vincent Zurzolo is co-owner of the New York-based Metropolis Collectibles, the world’s largest vintage comic book dealership, and ComicConnect.com, the largest online vintage comic auction house. He and his partner, Stephen Fishler, hold five Guinness World Records for the most expensive comics and related collectibles ever sold. Contact him at [email protected].

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Source: thepennyhoarder.com

The Kiplinger 25 list of our favorite no-load mutual funds dates back to 2004, and our coverage of mutual funds goes all the way back to the 1950s. We believe in holding funds rather than trading them, so we focus on promising mutual funds with solid long-term records – and managers with tenures to match.

Over the past 12 months, U.S. stocks hit new highs, and then a viral pandemic snuffed out a nearly 11-year bull market, wiping out gains in just days … and then stocks bounced back into a new bull market just a few months later. The major indices have been roaring ever since, and have been regularly setting all-time highs of late.

That has many (but not all) of our Kiplinger 25 picks looking like their old selves.

Over the past decade, for instance, the 11 U.S. diversified stock funds with 10-year records returned an average of 13.4% annualized, right on par with the S&P 500 Index. Our seven bond funds as a group beat the Bloomberg Barclays U.S. Aggregate Bond Index over the past five and 10 years on an annualized-return basis.

Here are our picks for the best 25 low-fee mutual funds: what makes them tick, and what kind of returns they’ve delivered.

Data is as of Jan. 28, unless otherwise noted. Three-, five- and 10-year returns are annualized. Yields on equity funds represent the trailing 12-month yield. Yields on balanced and bond funds are SEC yields, which reflect the interest earned after deducting fund expenses for the most recent 30-day period.
– Fund not in existence for the entire period.

1 of 25

Dodge & Cox Stock

Composite image representing Dodge & Cox's DODGX fund

Symbol: DODGX
1-year return: 10.1%
3-year return: 4.9%
5-year return: 14.7%
10-year return: 11.5%
Yield: 1.7%
Expense ratio: 0.52%

The focus: Cheap shares in large firms.

The process: Ten managers home in on well-established companies with attractive prices and long-term prospects. Portfolio managers are patient and invest with a three- to five-year horizon in mind.

The track record: The fund is prone to streaky returns because the managers’ out-of-favor bets can take time to play out. Be patient. Over the past 10 years, the fund’s 11.5% annualized return beats 95% of its peers, which are funds that invest in bargain-priced large-company stocks. But, like many value-oriented funds, it lags Standard & Poor’s 500-stock index, which boasts a 13.5% annual total return (price plus dividends).

The upshot: Markets are cyclical, and this investing style will come back.

2 of 25

Mairs & Power Growth

Symbol: MPGFX
1-year return: 17.4%
3-year return: 11.0%
5-year return: 15.6%
10-year return: 12.9%
Yield: 1.0%
Expense ratio: 0.65%

The focus: Upper Midwest firms of all sizes with durable competitive advantages, trading at bargain prices.

The process: Three managers spend months analyzing a company’s niche in its market and its management team before they buy. The fund tilts toward health care and industrial firms. While MPGFX does hold some tech and communications giants, such as Microsoft (MSFT), Google parent Alphabet (GOOGL) and chipmaker Nvidia (NVDA), the fund’s top 10 holdings aren’t as heavy on tech names as many large-cap U.S. stock funds.

The track record: The fund “struggles in strong markets and picks up ground in downturns,” says lead manager Andy Adams. Growth’s 15-year annualized return beats 70% of similar funds. But over the past 12 months, it beats about half.

The upshot: The pandemic may have roiled stocks last year, but the managers will “stick to their knitting,” says Adams.

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Primecap Odyssey Growth

Symbol: POGRX
1-year return: 25.6%
3-year return: 10.6%
5-year return: 19.4%
10-year return: 15.0%
Yield: 0.4%
Expense ratio: 0.65%

The focus: Long-term bets on attractively priced, fast-growing firms.

The process: Five managers run a portion of assets independently. They all look for companies with better growth prospects than their share prices imply. And they buy for the long term: The typical holding period is 10 years.

The track record: This aggressive growth fund’s one-year return ranks behind 94% of its peers, in part because of big drops in Alkermes (ALKS) and Southwest Airlines (LUV). Smart investors will hold on. The fund’s 15-year record beats the S&P 500 by an average of 1.6 percentage points per year.

The upshot: These proven managers know how to block out the noise. We’re hanging in.

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T. Rowe Price Blue Chip Growth

Composite image representing T. Rowe Price's TRBCX fund

Symbol: TRBCX
1-year return: 30.5%
3-year return: 17.1%
5-year return: 22.5%
10-year return: 17.6%
Yield: 0.0%
Expense ratio: 0.69%

The focus: Established companies with strong growth prospects.

The process: Manager Larry Puglia favors firms with sustainable competitive advantages over rivals, strong cash flow, healthy balance sheets and executives who spend in smart ways. The company’s top holding is Amazon.com (AMZN, 11.3% of assets), which has been one of the darlings of the COVID-period market, up 76% in 2020 versus 18% for the S&P 500. In April, Puglia took on an associate manager, Paul Greene, but says he has no plans to retire.

The track record: Puglia beats the S&P 500 index handily over the past three, five and 10 years – and, despite the recent market volatility, over the past 12 months as well.

The upshot: Blue Chip Growth was a prime beneficiary of the long bull market, but the fund has held up well since the market crashed. And over the long stretch of a full market cycle, Puglia has outpaced the S&P 500.

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T. Rowe Price Dividend Growth

Symbol: PRDGX
1-year return: 11.3%
3-year return: 11.3%
5-year return: 15.8%
10-year return: 13.1%
Yield: 1.0%
Expense ratio: 0.63%

The focus: Firms with a mindset to increase dividend payouts over time.

The process: Manager Tom Huber focuses on large, high-quality companies that generate strong free cash flow (cash profits after capital expenditures) and have the capacity and willingness to raise their payouts.

The track record: PRDGX lags the S&P 500 by more than 6 percentage points over the past year. But its 15-year annualized return slightly edges out the S&P 500 and beats 86% of its peers (funds that invest in stocks with value and growth traits).

The upshot: T. Rowe Price Dividend Growth, an all-weather portfolio, keeps pace in good markets and holds up well in down markets.

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Vanguard Equity-Income

Composite image representing Vanguard's VEIPX fund

Symbol: VEIPX
1-year return: 3.5%
3-year return: 4.5%
5-year return: 11.9%
10-year return: 11.3%
Yield: 2.6%
Expense ratio: 0.27%

The focus: Dividend-paying stocks.

The process: Wellington Management’s Michael Reckmeyer runs two-thirds of the assets; Vanguard’s in-house quantitative stock-picking group manages the rest. Together, they build a portfolio of about 180 large companies, including Johnson & Johnson (JNJ), Procter & Gamble (PG) and JPMorgan Chase (JPM).

The track record: Health care stocks were a boon to the fund in 2019, but it has struggled over the past year, with a mere 3.5% gain. Nonetheless, over the past decade, VEIPX has beaten 93% of its peers (funds focused on large, value-priced firms).

The upshot: The fund offers above-average returns for below-average risk.

7 of 25

DF Dent Midcap Growth

Symbol: DFDMX
1-year return: 21.4%
3-year return: 18.0%
5-year return: 21.6%
10-year return: –
Yield: 0.0%
Expense ratio: 0.98%

The focus: Growing midsize companies.

The process: Four managers find solid businesses that dominate their industries, generate plenty of cash and are run by executives who spend wisely. The fund will hold on to shares as long as a firm is still growing fast. Shares in large-cap stock Ecolab (ECL) have been in the fund since 2011.

The track record: DFDMX has beaten the majority of its peers in seven of the past nine calendar years.

The upshot: Mid-cap stocks are often in the market’s sweet spot. Typically, these firms are growing faster than large companies and are less volatile than small businesses.

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Parnassus Mid Cap

Symbol: PARMX
1-year return: 12.4%
3-year return: 9.6%
5-year return: 14.6%
10-year return: 11.9%
Yield: 0.2%
Expense ratio: 0.99%

The focus: Growing midsize firms that pass environmental, social and governance (ESG) measures.

The process: Two longtime managers, 18 analysts and a dedicated ESG team pick 40 stocks, with sustainability in mind. Hologic (HOLX), a diagnostics and medical imaging company, and Republic Services (RSG), a waste-collection service, are among the top holdings.

The track record: PARMX’s one-year return has beaten 68% of its peers. Over 10 years, the fund’s 12.0% annualized return beat 87% of its peers.

The upshot: At the moment, technology is the largest sector allocation at more than a quarter of assets. The fund is also heavily invested in industrials (21%) and healthcare (14%).

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T. Rowe Price Small-Cap Value

Symbol: PRSVX
1-year return: 15.5%
3-year return: 7.5%
5-year return: 15.3%
10-year return: 10.8%
Yield: 0.4%
Expense ratio: 0.83%

The focus: Unloved, under-the-radar, bargain-priced small companies.

The process: Financially sound firms with a competitive edge over rivals and a strong management team make it into the fund. PennyMac Financial Services (PFSI), a national mortgage lender, and Belden (BDC), a maker of networking and cable products, are among PRSVX’s top holdings.

The track record: Small-cap value stocks have been the worst-performing U.S. category in recent years. But this fund is only a little behind the Russell 2000 index over the trailing five-year period.

The upshot: Small-cap stocks have gained some wind in their sails of late, but they still have some catching up to do compared to their large-cap brethren. PRSVX provides exposure to the some of the best values among smaller companies.

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T. Rowe Price QM U.S. Small-Cap Growth

Symbol: PRDSX
1-year return: 24.0%
3-year return: 13.2%
5-year return: 19.0%
10-year return: 14.5%
Yield: 0.0%
Expense ratio: 0.79%

The focus: Small, growing companies.

The process: Using quantitative models (hence the “QM” in its name) developed initially while he was in academia, Sudhir Nanda and his team focus their sights on high-quality, highly profitable firms with reasonably priced shares. Samuel Adams beer crafter Boston Beer (SAM) and semiconductor-materials provider Entegris (ENTG) are among top holdings.

The track record: The fund has handily beaten the Russell 2000 small-cap stock index over the past three, five and 10 years.

The upshot: Since the end of 2019, shares in small companies are up less than 7%. But Nanda focuses more on an individual company’s business characteristics than on big-picture market or economic issues.

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Wasatch Small Cap Value

Symbol: WMCVX
1-year return: 20.1%
3-year return: 8.4%
5-year return: 16.7%
10-year return: 12.1%
Yield: 0.0%
Expense ratio: 1.20%

The focus: Temporarily underpriced shares in small, fast-growing firms.

The process: This is a growth-ier value fund. The portfolio’s 60-odd stocks fall into one of three buckets: undiscovered, little-known companies; firms suffering a temporary setback; and cheap stocks in steadier, slow-growth businesses.

The track record: The fund is back in a groove, with a 20% gain over the past 12 months. Its three-, five- and 10-year records rank among the top 68%, 77% and 85% of similar funds, respectively.

The upshot: Despite their recent poor performance, small-cap stocks offer higher growth potential than their large-company brethren. To cash in, you must have a long-term view and be willing to bear some turbulence.

12 of 25

Fidelity International Growth

Symbol: FIGFX
1-year return: 16.2%
3-year return: 9.0%
5-year return: 13.5%
10-year return: 9.1%
Yield: 0.1%
Expense ratio: 1.01%

The focus: Growing foreign companies.

The process: Manager Jed Weiss homes in on firms with good growth prospects and strong niches in their businesses that give them pricing power – the ability to hold prices firm in bad times and raise them in good times.

The track record: Weiss outpaced the MSCI EAFE index in 10 of the past 12 calendar years. His fund’s average 10-year return beats 78% of all foreign large-company stock funds. FIGFX tends to hold up well in bad markets.

The upshot: Weiss picks stocks one at a time, but he says long-term growth theme are set to propel returns going forward. At the moment, top holdings include the likes of Japanese sensor firm Keyence and multinational chemicals firm Linde (LIN).

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Janus Henderson Global Equity Income

Symbol: HFQTX
1-year return: 3.7%
3-year return: 0.3%
5-year return: –
10-year return: –
Yield: 7.5%
Expense ratio: 0.97%

The focus: High income in international-company equities.

The process: The fund aims “to provide a consistently high level of income while investing in overseas markets with a value bias,” says Ben Lofthouse, one of the fund’s three comanagers. “We look for the dividend to be sustainable.” To that end, firms with strong balance sheets, steady profits and cash flow are ideal for the fund. “Profitable companies have downside protection when things don’t go as well,” says Lofthouse.

The track record: Relative to other large-company foreign value stock funds, Global Equity Income shines. Over the past three years, the fund ranks among the top 33% of its peers. It currently yields 7.9%, and the fund says the annualized distribution yield “has consistently been around 6%.”

The upshot: In recent years, the managers have put aside some value measures, such as share price in relation to book value (assets minus liabilities), in favor of other gauges, such as the price-to-cash-flow ratio, that they say are better predictors of future returns. That should help them better identify values going forward.

14 of 25

Baron Emerging Markets

Symbol: BEXFX
1-year return: 33.7%
3-year return: 6.2%
5-year return: 15.6%
10-year return: 7.3%
Yield: 0.0%
Expense ratio: 1.35%

The focus: Emerging-markets firms of all sizes.

The process: Manager Michael Kass favors profitable, growing firms with steady competitive advantages. Asian tech giants Samsung, Tencent Holdings (TCEHY) and Taiwan Semiconductor (TSM) top the portfolio.

The track record: After a decade of sluggish returns, peppered with a few good years (such as 2019), emerging-markets stocks got socked again, this time by the coronavirus. But they have roared back. Over the past year, the fund has beaten the MSCI Emerging Markets index by more than 6 percentage points.

The upshot: There’s still uncertainty about the impact of the coronavirus on emerging-markets economies, but BEXFX should continue benefiting as EMs recover.

15 of 25

AMG TimesSquare International Small Cap Fund

Symbol: TCMPX
1-year return: 15.3%
3-year return: 0.6%
5-year return: 10.7%
10-year return: –
Yield: 1.4%
Expense ratio: 1.23%

The focus: Small firms in developed foreign countries.

The process: Four managers circle the globe to find best-in-class companies. Japan, the U.K. and Italy are the fund’s biggest country exposures.

The track record: Small-cap foreign stocks have not fared well compared with shares in larger companies in recent years, but TCMPX has beaten its benchmark, the MSCI EAFE Small Cap Index, since inception in 2013.

The upshot: Volatility doesn’t faze these managers. “We can’t guess what the market will do tomorrow, but we can invest in outstanding companies we think can continue to grow,” says lead manager Magnus Larsson.

16 of 25

Fidelity Select Health Care

Symbol: FSPHX
1-year return: 25.9%
3-year return: 17.5%
5-year return: 18.1%
10-year return: 18.9%
Yield: 0.5%
Expense ratio: 0.70%

The focus: Healthcare stocks.

The process: Eddie Yoon, manager since 2008, divides the portfolio into three parts: steady, growing firms, which make up the biggest chunk of the fund; fast-growing, proven companies with focused niches; and emerging biotech businesses.

The track record: Yoon’s 10-year annualized record beats 80% of all healthcare-focused funds.

The upshot: Yoon is getting defensive, piling into stable growers, while keeping an eye on innovative firms in areas such as gene and cell therapy.

17 of 25

Vanguard Wellington

Composite image representing Vanguard's VWELX fund

Symbol: VWELX
1-year return: 9.1%
3-year return: 7.6%
5-year return: 11.7%
10-year return: 9.5%
Yield: 1.5%
Expense ratio: 0.25%

The focus: A balanced portfolio of roughly 65% stocks and 35% bonds at the moment. Buy shares through Vanguard if you’re new to the fund; otherwise, it’s closed.

The process: Managers focus on large-company, dividend-paying stocks, high-quality government bonds and investment-grade corporate debt. The fund yields 1.5%.

The track record: Despite the coronavirus, the fund has beaten 82% of its peers over the past five years.

The upshot: The managers like a bargain. Before the pandemic, they were waiting for discounts in large banks and consumer names. Defensive moves on the bond side, such as focusing on the highest-quality corporate debt and setting aside cash for a correction, were well timed.

18 of 25

DoubleLine Total Return Bond

Symbol: DLTNX
1-year return: 2.9%
3-year return: 4.0%
5-year return: 3.1%
10-year return: 4.1%
Yield: 2.8%
Expense ratio: 0.73%

The focus: Mortgage-backed securities.

The process: Three managers balance government-guaranteed mortgage-backed bonds – which are sensitive to interest-rate moves (when interest rates rise, bond prices fall, and vice versa) but have no default risk – with non-agency mortgage bonds, which have some risk of default, but little interest-rate sensitivity.

The track record: The fund holds no corporate debt, which has hurt relative returns in recent years. Over the past five years, the fund’s 3.1% annualized return lags the Bloomberg Barclays U.S. Aggregate Bond index.

The upshot: Mortgage rates continue to sit near all-time lows. And the primary risk for most mortgage-backed bonds is the potential that mortgage holders will prepay their principal. We’re watching DLTNX closely. Meanwhile, it yields 2.8%.

19 of 25

Fidelity Intermediate Municipal Income

Symbol: FLTMX
1-year return: 3.7%
3-year return: 4.4%
5-year return: 3.3%
10-year return: 3.8%
Yield: 0.8%
Expense ratio: 0.35%

The focus: Debt that is exempt from federal income taxes, issued by states and counties to fund expenses such as schools and transportation.

The process: Four managers choose high-quality, attractively priced muni bonds. Managing risk is a priority, too.

The track record: This fund consistently posts above-average returns in its category. It rarely tops the charts, but it tends to hold up better in downturns.

The upshot: Muni bonds were richly priced until COVID-19 events fueled a selloff. But low rates and steady demand has propped prices back up. The fund yields 0.8%, or 1.4% for investors in the highest tax bracket.

20 of 25

Fidelity New Markets Income

Symbol: FNMIX
1-year return: 2.5%
3-year return: 1.5%
5-year return: 6.3%
10-year return: 5.5%
Yield: 4.1%
Expense ratio: 0.82%

The focus: Emerging-markets debt.

The process: Longtime manager John Carlson has retired, but his replacements, Jonathan Kelly and Timothy Gill, are longtime analysts for the fund. Not much will change. The fund will still focus on dollar-denominated government bonds, but Kelly says he will likely hold a more consistent position in corporate debt, now 15% of assets. Mexico, Turkey and Ukraine are its top country exposures.

The track record: Carlson’s 15-year return was in the top 23% of emerging-markets debt funds. We’re watching closely to see how Kelly and Gill do.

The upshot: Yields on emerging-markets debt are still near historic lows. But the exit path from the coronavirus is still uncertain, so while a recovery is expected at some point, a shadow remains over near-term economic growth projections in emerging countries. Even so, the fund’s yield, 4.1%, is attractive.

21 of 25

Metropolitan West Total Return

Composite image representing Metropolitan West's MWTRX fund

Symbol: MWTRX
1-year return: 6.8%
3-year return: 6.0%
5-year return: 4.3%
10-year return: 4.4%
Yield: 0.9%
Expense ratio: 0.68%

The focus: High-quality intermediate-maturity bonds.

The process: Four bargain-minded managers make the big-picture calls on the economy and invest accordingly in investment-grade bonds (those rated triple-B or better).

The track record: The fund got defensive early, nipping returns in 2016 and 2017. But its conservative position – it’s currently loaded up on Treasuries, government mortgage-backed bonds and investment-grade corporates – has been a boon over the past year, especially since the start of 2020. Total Return’s one-year return beats 63% of its peers, and its 10-year annualized return beats 65% of its peers. Both returns beat the Bloomberg Barclays U.S. Aggregate Bond index.

The upshot: The managers are “patient and disciplined,” says Morningstar analyst Brian Moriarty, and that should continue to set this fund’s performance apart over the long term.

22 of 25

Fidelity Advisor Strategic Income

Symbol: FADMX
1-year return: 6.9%
3-year return: 5.1%
5-year return: 6.3%
10-year return: 4.8%
Yield: 2.4%
Expense ratio: 0.68%

The focus: The fund seeks to deliver more yield than the Bloomberg Barclays Aggregate U.S. Bond index by investing in a blend of government debt and junkier, higher-yielding bonds. The fund yields 2.4%.

The process: Comanagers Ford O’Neil and Adam Kramer make broad calls on which bond sectors to emphasize while specialists do the individual bond picking.

The track record: The fund has returned 6.3% annualized over the past five years, which has handily beaten the Agg index.

The upshot: These days, the fund holds mostly high-yield debt (roughly 46% of assets), government securities (20%) and emerging-markets bonds (15%).

23 of 25

Vanguard High-Yield Corporate

Symbol: VWEHX
1-year return: 5.0%
3-year return: 5.6%
5-year return: 7.4%
10-year return: 6.2%
Yield: 3.0%
Expense ratio: 0.23%

The focus: Corporate debt rated below investment grade.

The process: Manager Michael Hong keeps risk at bay by focusing on debt rated double-B, the highest quality of junk bonds.

The track record: The fund struggles to top the charts in go-go years, but it leads in so-so years. All told, its 10-year annualized return beats 86% of its peers. It yields 3.0%.

The upshot: High-yield rates, on average, were near historic lows until the pandemic bumped them above 6% in early March, though they’ve since come back down to record lows from there. (When rates rise, bond prices fall, and vice versa.) We’re watching VWEHX carefully.

24 of 25

Vanguard Short-Term Investment Grade

Symbol: VFSTX
1-year return: 4.5%
3-year return: 4.0%
5-year return: 3.2%
10-year return: 2.6%
Yield: 0.7%
Expense ratio: 0.20%

The focus: To deliver a higher yield than cash and short-term government bonds. VFSTX currently yields 0.7%.

The process: Three managers, who took over in April 2018, invest in high-quality corporate debt, pooled consumer loans and Treasuries, with maturities that range between one and five years.

The track record: The fund has returned 3.5% annualized over the past three years, which outpaces 87% of its peers.

The upshot: Low rates mean low yields for now. But pressing uncertainties, such as the unknown recovery time from coronavirus, negative rates in other parts of the world and geopolitical risks, make this fund a welcome haven.

25 of 25

TIAA-CREF Core Impact Bond

Symbol: TSBRX
1-year return: 5.1%
3-year return: 5.3%
5-year return: 4.2%
10-year return: —
Yield: 1.0%
Expense ratio: 0.64%

The focus: Bonds issued by companies that meet high ESG standards, as well as projects that deliver a measurable environmental or social impact.

The process: Veteran bond picker and lead manager Stephen Liberatore invests just under two-thirds of the fund in attractively priced, high-quality debt issued by firms that pass his own carefully honed ESG measures. He devotes about 40% of the fund’s assets to fund projects related to alternative energy, affordable housing or community development. The fund was formerly called Social Choice Bond.

The track record: The fund’s 4.2% annualized return over the past five years is just slightly below similar bond funds and the Agg index.

The upshot: Investors don’t sacrifice much performance or yield with these ESG- and impact-focused bonds.

Source: kiplinger.com

Short term investments are those investments that can yield their returns within a short period of time — usually within 1 to 3 years. (contrary to a long term investment such as saving for retirement).

In other words, short term investing are typically used to meet short-term financial goals (such as buying a house or go on a vacation).

A bank checking account is one of the best known and popular ways to save for such a goal.

But your traditional checking account only pays a meager return, if at all.

If you can’t find an alternative to a checking account, no need to fret.

There are plenty of short term investments that will help keep your money safe and earn a good return at the same time.

Below, we’ve curated the best short term investments to help reach your investment goals.

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Things to consider:

First thing first, before you make any short term investments, you should know about the risk, return and investing time frame of short term investments.

Average return to expect: 1 to 4% per year;
Risk: very low to low risk of losing money;
Time frame: 0 to 3 years

Best short term investments:

If you’re saving and investing money for the short term, i.e., to use it as a down payment on a house, you will not invest that money in stocks or mutual funds, right?

That’s because, stocks are high risk investments. And if you need the money for a certain time, it might not be available due stock market volatility.

Instead, a smart choice is to save that money in a low-risk investment where you can protect the capital invested and earn interest/income at the same time.

If you have a different investing goal, such as saving for retirement, it’s best to look at stocks or mutual funds. Investing in stocks or mutual funds is considered a long term investment as opposed to short term investing.

If you’re interested in investing for the long term, here’s how the stock market works.

So, what are your options? Here are some of the best short term investments to consider to earn some interest on your money.

1. Savings account.

A savings account at a bank is an excellent choice. And they usually pay more interest than a regular checking.

They are quite safe. Savings account are insured by the FDIC, but only for up to $250,000.

That means if a bank goes bankrupt, the government will step up and give you your money back.

In addition, they are very liquid. You have access to your money fairly easy.

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2. Certificate of deposit (CDs).

If you want a good rate of return on money that you don’t plan on using within the next couple of years, CDs is a safe place to do invest it.

Banks sell certificate of deposit for a specific dollar amount and length of time. As an investor, you agree to leave a certain amount of money with the bank for a specific time.

When the time is up, the CD matures. Then, you get your money back, plus interest.

CDs are also FDIC insured for up to $250,000. They provide a safe and competitive yield. That makes them some of the best short term investments to consider.

The minimum deposit requires to open a CD depends on the bank. But it usually ranges from a few hundred dollars to thousands.

The CIT Bank is paying 1.30% for an 11-month CD. There is an opening minimum of $1,000. With most CDs, if you tap into your money before maturation, you will get hit with an early withdrawal penalty.

However, with this CIT Bank CD, there is no penalty if you withdraw early.

CIT Bank has various types of CDs. If you prefer longer terms CDs, check them out now at the CIT Bank website.

3. Money market fund

While you can keep your cash at a bank in a savings account because they’re safe there, you don’t have to.

You can try a money market fund. They are safe as well.

A money market fund is a type of mutual fund (but thy don’t focus on stocks or bonds).

Mutual funds companies such as Vanguard offer money market funds.

Money market fund is not insured by the government, so there is a possibility you can lose money. However, they are quite safe.

They’re safe, because they have a dollar invested in securities for every dollar you deposit in your fund.

The principal money you invested does not change in value. When you invest in a money market fund, you earn dividends. That’s a good advantage.

Another advantage of a money market fund as a short term investment is that it provides higher yield than bank savings account.

It also allows you to write checks without incurring any charges.

So, if you’re saving money for a home that you’re going to buy soon, a money market fund is a safe place to grow your money.

4. Short-term corporate bond funds.

Bonds, in general, are similar to CDs. An exception is that they, just as stocks, are securities that trade in the market.

So, they may fluctuate in value, but not as much as stocks.

Bond funds are a collection of bonds from companies (large, medium, or small) from different industries. Hence, the name “corporate bond funds.”

Investing in bond funds can be used as a short-term investment. Sometimes, investors consider corporate bond funds to diversify their investment portfolio.

Just like a money market fund, corporate bond funds are not FDIC insured. But they are just as safe as a money market fund.

Plus, you don’t just invest in one bond or two bonds. If one bond in your investment fund takes a hit, it only affects a small amount of your money.

So while they are riskier than money market funds saving accounts, CDs, short term corporate bonds pay you more. That makes them one of the best short-term investments out there.

5. Treasury bonds.

One of the best ways to invest money in the short term is to buy treasury bonds. Treasury bonds are issued by the U.S. government.

There are three types: treasury bills, treasury notes, and treasury bonds. They are like CDs. Once the bond matures, you get the full money invested, plus interest.

Treasury bonds may provide the same or a better interest rate than CDs. But a big advantage is that, while they’re not FDIC insured, they are backed by the U.S. government.

In other words, the government promises to repay your money, which is considered to be very safe.

So if you have more than $250,000, you should consider a treasury bond.

Another advantage is that while interest on a CD is fully taxable, Treasury’s interest is state-tax-free.

In conclusion, short term investments are those in which you make for a certain and short period of time for a specific goal.

Short term investments aren’t the best if you’re seeking high returns.

But if you’re a beginner investor you should consider placing some of your money into these best short term investments.

Remember: don’t invest your money in stocks when you plan to use it within the next five years, because a stock market drop can dry out your investment portfolio.

Speak with the Right Financial Advisor

If you have questions beyond short-term investments, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

Source: growthrapidly.com

Tag: short-term investment

Short-Term Investments to Consider in 2020

What Are Short-Term Investments?

Types of Short-Term Investments

1. Savings Accounts

2. Money Market Accounts

3. CDs

4. Treasuries

5. Bond Funds

6. Peer-to-Peer Lending

7. Roth IRAs

Investment Options for Short-Term Money

Key Takeaways on Short-Term Investments

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1. You’re planning for retirement.

2. You’re ready to invest.

3. You’re starting a family.

4. You have a lot of Debt.

5. You’re building a business.

Additional Money Tips:

Hereâs How to Get Started With Comic Book Investing

How to Get Started With Comic Book Investing

1. Learn Everything You Can About Comic Books

2. Decide Your Budget

3. Start Buying — But Do Your Due Diligence

Is This a Long-Term vs. Short-Term Investment?

Some Tips for Identifying Potentially Valuable Comics

5 Best Short Term Investments to Grow Your Money

Things to consider:

Best short term investments:

1. Savings account.

2. Certificate of deposit (CDs).

3. Money market fund

4. Short-term corporate bond funds.

5. Treasury bonds.

Read more:

Speak with the Right Financial Advisor

What Are Short-Term Investments?

Types of Short-Term Investments

1. Savings Accounts

2. Money Market Accounts

3. CDs

4. Treasuries

5. Bond Funds

6. Peer-to-Peer Lending

7. Roth IRAs

Investment Options for Short-Term Money

Key Takeaways on Short-Term Investments

Table of Contents

Jackson National Life Insurance At A Glance

Jackson National Life Insurance Company Information

Financial Strength

Jackson National Life Insurance Products

Fixed Annuities

Variable Annuities

Fixed Index Annuities

How Does Jackson National Compare?

History Of Jackson National Life Insurance

Summary

About the Author

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Reader Interactions

1. You’re planning for retirement.

2. You’re ready to invest.

3. You’re starting a family.

4. You have a lot of Debt.

5. You’re building a business.

Additional Money Tips:

How to Get Started With Comic Book Investing

1. Learn Everything You Can About Comic Books

2. Decide Your Budget

3. Start Buying — But Do Your Due Diligence

Is This a Long-Term vs. Short-Term Investment?

Some Tips for Identifying Potentially Valuable Comics

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DoubleLine Total Return Bond

Fidelity Intermediate Municipal Income

Fidelity New Markets Income

Metropolitan West Total Return

Fidelity Advisor Strategic Income

Vanguard High-Yield Corporate

Vanguard Short-Term Investment Grade

TIAA-CREF Core Impact Bond

Things to consider:

Best short term investments:

1. Savings account.

2. Certificate of deposit (CDs).

3. Money market fund

4. Short-term corporate bond funds.

5. Treasury bonds.

Read more:

Speak with the Right Financial Advisor