Good news: I've got US$100,000! Bad news: for one year.
February 21, 2008 2:24 PM Subscribe
Asking for a friend. As the result of a credit card arbitrage scheme, he's going to have a hundred thousand bucks to invest for a period of one year (that is to say, until the 0% APR ends).
What should he do with the money? The primary limitation (besides time) is that it has to be basically no-risk, since of course he has to have at least $100K on hand at the end of that year to pay back the credit cards.
He genuinely enjoys finance and playing around with numbers and will not be scared off by something that requires a lot of effort and/or babysitting if the return's high enough. Other than the aforementioned arbitrage, he's debt-free, no car payment, no credit card debt, only rent and living expenses which are covered by his job - the $100K can be left untouched once invested.
I realize that trying to make as much money as possible in only a year with low-to-no-risk investments is pretty limiting, but maybe having a chunk of change like this carries some advantage with it...? CDs seem like the obvious option - are they? Are there any others?
(I've dug through AskMeFi and found a couple threads on the $100K part and one or two on the limited-time part, but none that really covered this specific situation.)