Short Term Lump Sum Investment Ideas

[TexinOz]

I am a U.S. expatriate living in Australia for 3-4 years. I have $150K lump sum to invest. I will need this money in approximately 3-4 years to purchase a house when I return to the States. With such low interest rates on CDs and money market accounts right now, what would you recommend for this investment to maximize return while minimizing risk? I have talked to a financial advisor and am considering options such as municipal bond funds.

[disneysteve]

With a 3-4 year time frame, I would do only CDs or MMAs. A bond fund is risky because interest rates are very likely to rise over the next few years so the chances of losing money in a bond fund are significant.

Buying individual bonds that will mature prior to the time you need the money could be an option. As long as you hold the bond to maturity, the rate fluctuation won't matter.

[snafu]

am reading the $AU is solid while $USA is hurtling down

[buildmybudget]

I don't see how you have too many options other than a cd or money market accounts...If you want to ensure you have that 150k to buy a house, you'll have to invest at the risk free rate. Perhaps you can find a financial advisor who could help you diversify and earn a higher rate of return at an acceptable level of risk?