Best way to invest money
What is the best way to invest $200,000.00 to make the highest rate of return?
Terry Says
That depends on the degree of safety you want! Do you want to invest where there is the least chance of loss of ANY of your principal? In that case, read this:
https://www.terrysavage.com/t-bills-beat-cds-2/
You can certainly earn higher yields than 6-month T-bills, currently paying about 4.5%. But there are two risks:
Default risk: higher yields in buying bonds from companies that have risky balance sheets and might not be able to repay — thus they pay higher yields to get funding
Time risk: You can usually get a higher rate in longer-term bonds of high quality. But if inflation returns and yields move higher, you’ll be stuck with those old, low-yielding fixed rate bonds for a longer time. Read this: https://www.terrysavage.com/beware-of-bonds-3/
And if you want complete and IMMEDIATE liquidity for the money, you can buy a government securities money market fund at Fidelity or Vanguard.
