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Baraka_Guru · 05-31-2011, 06:12 PM

Just be careful with mutual funds, because there are penalties (often severe) if you need the money sooner than you agreed upon. I'm not so sure about them as short-term investments.

If it's short term, and you definitely need the money (i.e. you are going to use it in two years), this means you need to protect your principle (low risk) and have access to it soon (short term).

This leaves options such as T-bills, bonds, GICs, money-market products, etc. The drawback on these, of course, is high inflation will wipe out any gains.

But at least you know you'll get your money back.

If I know that I need the money for something important---and soon---that is the bottom line: low risk.

Growth funds tend to need longer cycles than two years to make them worthwhile. In two years' time, you could end up with less than what you started with.

05-31-2011, 06:12 PM	#9 (permalink)
Baraka_Guru warrior bodhisattva Super Moderator Location: East-central Canada	Just be careful with mutual funds, because there are penalties (often severe) if you need the money sooner than you agreed upon. I'm not so sure about them as short-term investments. If it's short term, and you definitely need the money (i.e. you are going to use it in two years), this means you need to protect your principle (low risk) and have access to it soon (short term). This leaves options such as T-bills, bonds, GICs, money-market products, etc. The drawback on these, of course, is high inflation will wipe out any gains. But at least you know you'll get your money back. If I know that I need the money for something important---and soon---that is the bottom line: low risk. Growth funds tend to need longer cycles than two years to make them worthwhile. In two years' time, you could end up with less than what you started with. __________________ Knowing that death is certain and that the time of death is uncertain, what's the most important thing? —Bhikkhuni Pema Chödrön Humankind cannot bear very much reality. —From "Burnt Norton," Four Quartets (1936), T. S. Eliot Last edited by Baraka_Guru; 05-31-2011 at 06:15 PM..