I currently have between $50,000-$85,000 dollars that is just sitting
in a savings account, and I would like to place it somewhere that
earns more interest, but I need unrestricted access to the cash, as I
may be investing it in property/or a business in the very near future.
My question is:  What kind of fund/account can I place my money into
that will return maximum interest while allowing instant access to the
funds?  Please list several of my best options.  Thanks!

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Request for Question Clarification by hailstorm-ga on 16 Dec 2002 23:36 PST

jasmine717,

Could you please clarify what sort of instant access you are
interested in?  Do you need the ability to write a check for the
funds, or to withdraw the money immediately from a bank or ATM
machine?  Would the ability to gather the funds within a week suffice?

Also, what is your aversion to risk?  Are you willing to invest in
something that might offer a higher rate of return, but could possibly
lose money as well?

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Clarification of Question by jasmine717-ga on 17 Dec 2002 08:34 PST

Gathering the funds within a week would suffice. I do not need
withdrawals from an ATM machine, writing a check would be a plus, but
not necessary.
As far risking my money for a better return, I would consider putting
half of the money away for that, in hope of a higher return, but not
all of it.
I hope this helps.

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Request for Question Clarification by arimathea-ga on 18 Dec 2002 05:18 PST

What is your interest rate currently?

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Clarification of Question by jasmine717-ga on 18 Dec 2002 09:33 PST

Currently in savings investment account at 1 percent interest, I know
that I can at least get a 2 percent or higher.
Thanks.

jasmine717-ga,

Just to let you know, I am NOT an investing specialist.  But I have
done my own research on this in the past.  For your short term
investing needs I would suggest the following two options.

1) Money Market Funds - These provide very ready access to cash and
have a very good return (for a short term investment).  Interest rates
are variable and you may need to shop around a little bit.  I do not
believe that they can lose money (I have never actually seen a money
market fund that loses money).  I could recommend Netbank
(www.netbank.com) for money market investment as they have a very nice
(2.35%) APY (as of today). You may be able to find a nice return at
your local bank or credit union as well.... shop around and be wary of
fees.

Keep at least the minimum balance in a money market fund and you will
normally not incur fees (NetBank's minimum is around $100, but the
minimum balance that does not incur fees is $250). Generally you get
to make up to 6 transactions per month on this type of account without
incurring fees. Beyond that you pay a fee of approximately $5-10 per
transaction.

2) Mutual Funds - A lot of these are losing money right now, so be
very careful. I would only recommend these if you will be keeping
money in them for at least 3 months or more. You can get money out of
these pretty readily (but not immediately, like the money market fund)
because they operate just like a regular investment account.  Getting
money out in about a week is possible.  You buy and sell shares using
a broker such as E*Trade, AmeriTrade or others.

The following is a good site that can educate you regarding mutual
funds:
http://www.fool.com/school/mutualfunds/mfsem/mf.htm

Mutual funds are a much more complex animal that are money market
funds. You definitely stand a chance of losing a lot of money in this
ecomony by investing in mutual funds, but there are some that can give
you substantial gains nonetheless. Compared to money market funds,
mutual funds can earn returns of 12 to 20% at the high end and -12 to
-20% at the low end. Like the old saying goes, with greater risk lies
greater reward... but the risk is what you need to balance.

Perhaps you would be more comfortable by investing a little bit (say
$10,000) in mutual funds and the rest in a money market account. The
more you diversify and spread out the risk, the lower your chances of
losing money. Investing in real estate would definitely help in
spreading out the risk.

I hope that this answers your question, please request a clarification
if you need it. Don't forget to rate the answer.

Best Regards,

krobert-ga

thanks so much:)