Investment Advice Needed: 50k for 3 months

[Jamie23]

Hi all



Someone I care about asked me for some investment advice. I would like to help them out, but am not certain what to tell them at this point.



Basically they will have to hold around 50k CAD cash (of their money) for about 3 months, and then have to give it away. So their question is how can they use that 50k in 3 months time to maximize their return, under the assumption that the investment is very low risk as they need to pay that money back after 3 months.



Any thoughts at all would be greatly appreciated whether it be general ideas or specific investment opportunities in the GTA region. I am happy to provide more information if necessary, but I don't know too much about their finances otherwise.



Many thanks

 

[Rickson9]

For better or worse, 3 months is too short an investment horizon for a novice to do anything outside of a GIC or savings account.

 

[Thomas Beyer]

Most banks offer around 1% to 1.4% PER YEAR in savings accounts or GICs.



So using 1.2% on $50,000 that is $600, per year, or $150 per quarter, or $50/month.

 

[Sherilynn]

The only possibility I can think of is bridge financing, but there is no guarantee that the money could be returned within 3 months, so it would be a gamble.

 

[Sherilynn]

And only someone with experience in private mortgage funding should do it anyway.