I write this with trepidation because I certainly don't want to be spammed. 🙁
I have come upon 40K through work that I want to invest. This 40K is mine to keep if I stay at work for 3 years..but if I leave prior to that I have to pay it back in full w/ interest. I have no intention on leaving at all, but I cannot predict the future. So I want to reasonably make as much off this as I can over 3 years knowing that at anytime I have to pay it back.
Seeing that inflation is 7-8% for the forseeable future….and there might be a 1/3 chance of staginflation or a recession in the next 1-2 years….some of my options are
1) keep it in a bank savings account, make 0.5 – 1% / year (not ideal).
2) buy bonds (e.g. muni) that pay 2.5-4%/year
3) Buy US treasuries, make like 1-2%/year
4) invest in stable, blue chip dividend stocks. e.g. VZ, C…those are depressed and have yields of 5 and 4% respectively.
5) something like JEPI that writes covered calls on the S&P 500..which over the next year might be a good idea. Covered call funds mute returns but there won't be much positive gains in the S&P 500 during that time
6) buy index fund ETFs
7) US treasure I-bonds (yield 7+% but there is a payment penalty if sold prior to 5 years)
8) Maybe buy select “stagflation” protected ETFs like energy, health care, consumer staples, etc.
I'm fully aware that I may not be able to beat infiation over 3 years. But I don't want to take too much risk but I'm not completely risk adverse or else I wouldn't be asking this question in the first place.
Just looking for general theories. Please no spamming, it won't be helpful.
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