What would you suggest for a 1 to 3 year investment for my money?

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Hello, I would like to invest $50,000 for about 1 to 3 years. I don't plan on withdrawing the money during that time, but it should be available if there is a need. Do you have any suggestions? Thank you!

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Answers (1)

Answers (1)



Without knowing more about your tolerance for risk and other pieces about your financial information, I can't give you a specific recommendation.  Call in to our financial advisers at 1-800-531-USAA for a specific recommendation.  That being said, here's a few things for you to think about to help steer you in the right direction.


Time frame - Try to get more specific with your 1 to 3 year time horizon.  You may select more conservative investments that don't move much in value if you know you'll need the money in a year.  Moderately conservative investments like bond mutual funds and short duration instruments may be appropriate if you are fairly confident with the 3 year time frame.  These typically do go up and down in value, and often pay monthly dividends that can be part of your overall return.  I'd normally steer you away from most equity based investments if you have under a 5 year time frame because of the risk of a market downturn in the short run.


Risk - Take stock of how much risk you are willing to take.  Are you comfortable with the amount going down in value?  And how much?  Greater risk can lead to greater returns over the long term, but that doesn't protect you from a downturn in the markets.


Need to withdraw - You mentioned you didn't plan on withdrawing the money but wanted it to be available if there is a need.  I'd want you to keep a solid liquid emergency fund in of 3-6 months of living expenses set aside in savings before looking for an investment.  I'm assuming this $50,000 exceeds and is not a part of your emergency fund.


Expectation of return or loss - Are you just trying to keep the money safe?  Or looking to make large long-term gains?  While individual investments do vary, taking on a little bit of risk may be able to generate more return than your standard savings account.


Other financial needs - If you have any high interest debt in your name or even long-term debt like a mortgage, paying that off can give a pretty good return on your money.  It's also important to know how this sum of money fits into a long-term retirement plan, any upcoming major purchases, or other considerations like gifts for family.  


I'm sorry I can't be more specific, but hopefully this helps get you started!