Personal Investments • Teenager looking to build short term portfolio

Basically my question is confirmation of this statement: the best way for short term growth is through index funds

Index funds typically are stocks and/or bonds. Neither is great for a goal in <5 years. Money that will be needed in such a short time-frame should likely be in cash instruments like:
Money Market Fund (e.g., Fidelity® Government Cash Reserves (FDRXX), Fidelity® Government Money Market Fund (SPAXX), or Fidelity® Treasury Only Money Market Fund (FDLXX)); or
Certificates of Deposit (Fidelity has CDs, typically ties your cash up for a year or more); or
3-month Treasury Bills (Fidelity has these too) ; or
High Yields Savings Account (check around on BankRate.com).

I'd just go with a money market fund like FDRXX at Fidelity; simple and very liquid (nothing's tied up for X months/years).

Statistics: Posted by bonesly — Thu Apr 04, 2024 1:17 am — Replies 7 — Views 518

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