Who is good with money/investing?

LuckyDad

Say you have been put in charge of managing some money for an elderly relative. It's not a huge sum of money, but it's in the realm of a nice new car. Said relative may need the money back at some point in the next year or two, but may not, based largely on their health and other hard to predict factors.

If this was 2000 I would just throw it in a short term CD at 3-4% interest and call it a day, but CD rates are awful right now (<1%), and savings accounts pay basically nothing. Meanwhile the stock market has been on fire (possibly going to correct a bit soon?).

What are my options? "Do Nothing" is acceptable, but feels like wasting an opportunity. Index fund? Bond fund? Individual stocks are out, too much risk. For real though, I'm very frustrated by CD rates :P

KTdidit

Being that it is someone else's money I'd say play it safe. Find the best rate in something where you can't lose it. CD rates suck but you won't lose any money, compared to investing which could get you a better return but you could lose it too. I know some online banks (Ally for one) have really good savings account and money market rates.

mrebecca

I agree: play it safe.
Other than that, I have nothing useful to add.

CinemaGoddess

Ask Money Matters on Proboards.  

LuckyDad

Thanks, everyone! I guess end of the day I know I have to just be conservative and safe, but it does seem like a shame, and <1% CD rates feel borderline insulting to me.