Getting Started In Short Term Investing

Short term investing does not seem to be an option to the average person. Savings account and 401K are the typical options but not the only ones. Today’s savings accounts do not have the great interest rate that we used to see and the 401k is for retirement and only allows for with drawls at certain times. The 401k is not a short-term investment and that is something people should understand.
If you have funds to invest you could look at other short term options like T-bills, CD’s and money market funds. Other short-term investments are US Treasury, floating rate funds and short-intermediate bond funds. But with these is a specified time frame where you must wait for the maturity date. For this reason, you must know the purpose for your saving before you decide on the type of investment that is right for you.
Of course, the highest interest rate will go with the higher risk investment and one of those would be the floating fund. But know that environmental issues like natural disasters could effect your interest rate and then you will earn less than you expected.