Inquiry Regarding 2 Year Investment

cferg32 | Feb 4, 2013 | 1 posts since 2013

I am a student who has accepted a job that will place me outside of the U.S. for twenty seven months and am looking for advice on how to attempt to grow my cash while it collects dust.

Should I contact a stock broker? Should I purchase stocks myself? Get a CD for the measly .25% APY?

I appreciate any and all feedback.

(The amount would be around $10,000.)

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Answers

Shorebreak | Feb 5, 2013 | 4,039 posts since 2010

One can achieve a yield of 1.3% to 1.6% from a 2-year certificate of deposit at various financial institutions found on this blog site. For such a short period of time, 27 months, don't even go near a "stock broker" if you are relying on having your entire principal back when you return from overseas. If the $10k is all you have in savings it should remain in an insured deposit account as a 'rainy day fund'. If you are absolutely positive Mr. Market is going to be up significantly during your absence, and you can't be pursuaded to play it safe with your funds, then at least invest in a no-load diversified index fund, or exchange traded fund (ETF), through an online discount brokerage or utilizing Vanguard or Fidelity funds.

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