Dear Dagen: Where Can I Park My Money for Nine Months?
I might have some extra money sometime in January and I would want to invest it until around September. I was wondering what would be the safest way to invest it -- a six-month Treasury bill?
-- James Nelson
Money market funds may be the Lorna Doone of investment products but they are still a good place to sock your short-term cash. And finding a solid one is pretty easy.Retail money funds, which invest in short-term debt, such as Treasury bills and commercial paper, come in a few different breeds: government-only funds, non-government funds and tax-free funds. You will get a slightly higher yield in the non-government variety, which will invest in high-quality commercial paper and other instruments. For example, the seven-day average yield (no compounding) for non-government funds was 4.18% ending May 25, compared with 4.09% for taxable government-only funds, according to Connie Bugbee, editor of IBC's Money Fund Report. With only a few months to invest this money, you may want to go for the fund that is going to make you the most money. With a yield in the 4% range, that's not going to be much, but you can start by looking at the non-government funds with the highest yields. IBC Financial Data's
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV