Laura has enough money and personal savings to consider investing but because of college she will need to have access access to it in a short term which investment might he consider
Considering Laura's need for short-term access to her money, she may want to consider investing in the following options:
1. High-yield savings account: This is a low-risk investment option that offers higher interest rates compared to traditional savings accounts. While the returns may not be significant, it provides liquidity and immediate access to funds if needed.
2. Money market account: Similar to a savings account, a money market account provides higher interest rates. It also offers check-writing privileges, making it easy to access funds quickly.
3. Certificate of deposit (CD): A CD is a fixed-term investment that offers higher interest rates than savings accounts. However, the funds will be locked in for a specific period (usually a few months to a few years) without access to it. If Laura can invest a portion of her money that she won't need during her college years, she can earn higher returns.
4. Short-term bond funds: These funds invest in fixed-income instruments such as government bonds, corporate bonds, and treasury bills with short maturities (typically less than 3 years). They usually offer higher yields than savings accounts and provide some flexibility for accessing funds.
It's important to note that while these options provide easy access to funds, the returns may be relatively lower compared to long-term investments. Laura should carefully evaluate her financial goals, time horizon, risk tolerance, and liquidity needs before making any investment decisions. Consulting with a financial advisor would also be beneficial.