2 year investment plan?

Question

I'd like to set aside a modest amount of money each month to save for a new car. I'll need to access the money in 1-2 years. What is the best way to invest the money, so I can have it accessible when I need it? I don't just want it to sit in my checking account and do nothing.

Answer 1

money market

Answer 2

Since you will need the money in two years, I would suggest a money market account or a credit union savings account, whichever pays the highest interest.  I would not suggest a mutual fund or stocks of any kind for money that you will need in such a short term.  You are very smart to save ahead for your car so that you can pay cash and not have any car payments.

Answer 3

In today's market I would buy a good-quality global bond fund.

Answer 4

I would do CD laddering in a high paying 6 month CD. go to www.bankrate.com and read about CD laddering.