I have some savings ($35,000 USD) that I'll be living off of for the next 6-12 months. Is it possible to profit from some of this money in the short term before I need to access it?
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The short answer is "No" Don't do that.– JohnFx ♦Commented Nov 2, 2017 at 22:20
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money.stackexchange.com/questions/6778– NL - SE listen to your usersCommented Nov 2, 2017 at 22:22
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money.stackexchange.com/questions/83418– NL - SE listen to your usersCommented Nov 2, 2017 at 22:24
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2 Answers
Is it possible to profit from some of this money in the short term before I need to access it?
Sure, it's possible. But if the stock market decides to "correct" (or even crashes), you'll be in a world of hurt.
Thus, since it's so important that you not lose this money, just stick it in an online bank earning 1.2%, and withdraw "enough" twice a month.
EDIT: by "withdraw", I mean to transfer to your checking account.
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My "high interest" money market account is only earning 0.3%....– user12515Commented Jun 9, 2021 at 22:31
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1@Michael of course, my answer is 3.5 years old. (Also, Ally Bank savings account is 67% higher than your MM account, and there are even some which are 83% or more higher. :D– RonJohnCommented Jun 10, 2021 at 1:24
Yes, and there are several ways, the safest is a high-yield savings account which will return about 1% yearly, so $35 per month. That's not extremely much, but better than nothing (you probably get almost zero interest on a regular checking account).
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1My how quickly answers such as this go out of date... my "high interest" money market account is now earning 0.3%... inflation is eating me alive– user12515Commented Jun 9, 2021 at 22:32