chicken money

Terry Says

“Chicken Money” is a term I coined many years ago to describe “money you can’t afford to lose.” You may have some chicken money because you have a short-term time horizon, such as paying college next year, or saving up for a down payment as soon as possible. Or you may need chicken money because you are retired and won’t be able to replace losses in the market. Or you may simply want to have “enough” chicken money to let you sleep at night, so you can maintain confidence in your other investments.

Chicken money must be invested in safe, short-term (less than one-year), liquid (immediately or easily accessible) accounts. That would include a bank or mutual fund money market account, or 6-month bank CDs, or Treasury bills (read this: https://www.terrysavage.com/t-bills-beat-cds/

Just remember the motto of the chicken money investor: I’m not so concerned about the return ON my money as I am about the return OF my money!