Q. What are some good short-term investments with minimal risk for someone on active duty in the U.S. Marine Corps?

I’m young and new to the world of investment. I am on active duty in the Marine Corps, and I’m interested in a short-term (around one year) investment with minimal risk. Do you have any suggestions for where to start? 

A. First, thanks for your service!  We couldn’t do what we do were it not for what you do.

With your time frame, as well as your desire for minimal risk, your short-term investment options are pretty limited.  Remember that there is a direct link between risk and reward.  Little risk = little reward; more risk = (hopefully!) more return.

I’d recommend opening an on-line, FDIC-insured bank account.  Many of these banks offer much better rates than you can find locally, while offering the same FDIC protection.  Typically these accounts will link to your personal checking account for moving money in and out of your on-line account.  These accounts are also great locations for your emergency fund, too.

Stay away from heavy sales pitches promising great returns with little or no risk.  Investments like that simply don’t exist!  Remember: little risk = little reward!

Best of luck to you.  Stay safe!

John is a CPA and personal finance coach.  Email your questions to john@60minutefinance.com.

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If you need confidential financial coaching for your particular situation, please contact John for a no-cost, no-obligation discussion of your needs.

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