{"id":238369,"date":"2016-04-01T00:00:00","date_gmt":"2016-04-01T07:00:00","guid":{"rendered":"https:\/\/sdnews.com\/where-to-park-your-money\/"},"modified":"2016-04-01T00:00:00","modified_gmt":"2016-04-01T07:00:00","slug":"where-to-park-your-money","status":"publish","type":"post","link":"https:\/\/test.sdnews.com\/es\/where-to-park-your-money\/","title":{"rendered":"Where to park your money"},"content":{"rendered":"

Three solutions for the conservative investor<\/strong><\/p>\n

Por Taylor Schulte | Noticias financieras\u00a0<\/em><\/p>\n

In January 2016, U.S. stocks posted the worst 10-day start to a year in history. And, while the stock market has moved upwards, it continues to be volatile, causing some investors to be fearful about putting their money in equities.<\/p>\n

\"Taylor<\/a>
taylor schulte<\/figcaption><\/figure>\n

If the stock market doesn\u2019t align with your financial goals or you are looking for a more conservative option, below are potential solutions for where to park your money.<\/p>\n

High-yield savings account at an online bank<\/strong><\/p>\n

Online banks tend to have lower expenses than traditional banks and frequently pass those savings on to their customers. These high-yield savings accounts can generate up to 1.05 percent annually. Note, however, there are a few restrictions.\u00a0For instance, you can only make six transactions per statement cycle and the interest rates are subject to change. Also, be cognizant of account maintenance fees and stay under the FDIC limit of $250,000 to ensure your deposits are insured.<\/p>\n

While finding the right bank with the highest rate might be daunting, there are companies that can help. For a fee of 0.02 percent per quarter, maxmyinterest.com will rebalance your short-term savings accounts as interest rates change to ensure you are always\u00a0earning the highest available rate.<\/p>\n

Short-term bond fund<\/strong><\/p>\n

After savings accounts and Certificates of Deposit, the next step up on the risk scale would be high quality, short-term bonds. Instead of attempting to pick a handful of\u00a0individual\u00a0bonds and hoping they don\u2019t default, you might consider buying a mutual fund or index fund that holds hundreds, if not thousands, of bonds. Sure, you may lose some investment control (and potentially yield), but you also lower the risk.<\/p>\n

A short-term bond fund typically invests in bonds that are maturing within one to three years \u2014 also known as short duration. By keeping the duration short,\u00a0you are less impacted by a rise in interest rates,<\/a> which could have a negative impact on bond prices.<\/p>\n

Peer-to-peer (P2P) lending<\/strong><\/p>\n

While P2P lending isn\u2019t necessarily a solution for short-term savings (and hasn\u2019t been around long enough to be\u00a0labeled as\u00a0conservative), it could prove to be an alternative to traditional stocks and bonds for some.\u00a0P2P lending is exactly what it sounds like \u2014 you lend your\u00a0money to consumers?or businesses for an agreed-upon interest rate.\u00a0Leading players in this industry, such as Lending Club and Prosper,\u00a0help facilitate the loan and screen borrowers,\u00a0so you\u00a0can make an informed decision.\u00a0Lending money to a pool of?higher quality borrowers \u2014 as measured by credit score, credit\u00a0history, and other metrics \u2014 will result in a lower interest rate. Lending money to lower quality borrowers,\u00a0who have a higher chance of defaulting on the loan, will deliver a higher rate.\u00a0Many of these P2P lending sites are publishing rates of return between\u00a05 percent and 30 percent, prior to their fee.<\/p>\n

Before making an investment decision, be sure you are aware of all the risks involved and consult a financial professional for additional advice and support.<\/p>\n

With access to information, technology at our fingertips and great options for short-term savings, there\u2019s no reason you can\u2019t maximize your savings potential and have a healthy reserve in place.<\/p>\n

\u2014Taylor Schulte, CFP, is the founder of Define Financial in Downtown San Diego. Schulte specializes in providing independent, objective, financial advice to individuals, families and businesses. Follow him on Twitter at @DefineFinancial or visit his blog at definefinancial.com\/blog<\/a>.<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Three solutions for the conservative investor By Taylor Schulte |\u00a0Finance News\u00a0 In January 2016, U.S. stocks posted the worst 10-day start to a year in history. And, while the stock market has moved upwards, it continues to be volatile, causing some investors to be fearful about putting their money in equities.<\/p>","protected":false},"author":726,"featured_media":236980,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"Where to park your money","_seopress_titles_desc":"","_seopress_robots_index":"","jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[11547,11600],"tags":[],"class_list":["post-238369","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","category-sdnews"],"_links":{"self":[{"href":"https:\/\/test.sdnews.com\/es\/wp-json\/wp\/v2\/posts\/238369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/test.sdnews.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/test.sdnews.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/test.sdnews.com\/es\/wp-json\/wp\/v2\/users\/726"}],"replies":[{"embeddable":true,"href":"https:\/\/test.sdnews.com\/es\/wp-json\/wp\/v2\/comments?post=238369"}],"version-history":[{"count":0,"href":"https:\/\/test.sdnews.com\/es\/wp-json\/wp\/v2\/posts\/238369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/test.sdnews.com\/es\/wp-json\/wp\/v2\/media\/236980"}],"wp:attachment":[{"href":"https:\/\/test.sdnews.com\/es\/wp-json\/wp\/v2\/media?parent=238369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/test.sdnews.com\/es\/wp-json\/wp\/v2\/categories?post=238369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/test.sdnews.com\/es\/wp-json\/wp\/v2\/tags?post=238369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}