Financial Advice Q&A

New Member
Posts: 1
Question
How do I make some short term profits?
[ Edited ]

I have to pay my real Estate taxes in June. In the mean time, I'd like to know if it would be more profitable to put the money I have set aside for this bill into a short term CD or into a Money Market account.

Other Answers: 1
Community Manager
Posts: 227

I'm a glass half-full guy so...the good news is that you've got what you need to pay the property taxes!  However, given the current interest rate environment and the fact that you'll need the money in about three months, there's not a lot of "more profitable" options out there.  My recommendation is that you focus on preserving the good news, and that means focusing on options that are safe, stable and guaranteed.

 

A money market account, savings account or a three month CD would fit the bill.  You'll have to shop and compare rates and fees, but my guess is that you'll end up with an annual percentage yield in the .5% to 1.0% range. That's not very exciting, but don't let those low interest rates tempt you to choose a more risky option that could result in a loss.  You're set to pay the bill and that's truly a good news story.

 

Good luck.

 

JJ

 

 

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