Interest rates for money in a bank account are low, so keeping a lot of money in a savings or checking account is not profitable. People with money to spend for the next 5-20 years should develop a financial investment calendar to live by and achieve their goals. Different investment vehicles depend on when someone needs the money.

Investing Money to Spend For In 5 Years

The investment risk should be minimal for money that owners want to access in five years. Investment for five years should be safe from today′s dangerous overvaluations.

True Contrarian Investments LLC CEO Steven Jon Kaplan recommends purchasing I bonds. The money should yield more than other competing investments. I bonds have a U.S government guarantee and presently earn 3.54% compounded interest semiannually. It will accumulate to 19% in five years.

Those who hold them for five years get 100% interest without any penalties. There is an option to continue holding I bonds for another period of up to 30 years. I bond purchase requires setting up an account at and linking to a brokerage or bank account.

Investing Money to Spend in 10 Years

Ten years is a longer time frame, and it is worth taking more risk. Investors can plan a financial calendar to live by with more freedom to rely on long-term stock market growth stability. An investor with moderate risk and tolerance capacity deserves a 50-70% growth-oriented asset allocation in diversified equities. This investment tip is according to Spotlight Asset Group director of financial planning Brian G. Blackwell.

People who qualify to invest directly get a way to gain a tax-sheltered benefit and maintain liquidity, especially for a future down payment. For instance, someone can take out an amount in ROTH IRA tax and penalty-free if there is a need to use the monies for a down payment. If something changes and there is no home purchase, the money intended for the purpose can continue increasing tax-deferred for tax-free withdrawal if held until 591/2.

Investing Money with a Plan to Spend in 15-20 Years

A longer-term investment provides comfort to take more risks. Someone with a time frame of 10 years should allocate 50-70% to diversified investors and equities. Blackwell says an investor may increase that percentage by 10% for every additional five-year investment beyond the first 10 years. However, investors should have in their mind that they should get guidance from an investment professional before making investment decisions. They also need to evaluate their situations frequently with an investment professional. Regular evaluation helps to determine if a portfolio is still appropriate.

A financial calendar to live by is important before investment as it helps to choose the best place to hold money with a guarantee of increasing.