Consider a hypothetic personality of a 63 years old woman with no kilns to leave behind, a single woman who has been working for a long time now. She plans on retiring at the age of 65 and settling back to Peru. From the sale of her house, she received $230,000. Out of this value, she wants to invest in $200,000 in a scheme or something which will give her a good return rate and make her investment be a ladder to her ultimate success. The only hindrance now is that she requires nearly $100,000 in a 1 or 2 years’ time for some purposes unknown. The question arises how she should invest this money in order to get back what she expects.

One possible explanation can be, that if she does not see a 5-year timeline before her at the moment, she should probably not invest in anything or scheme which could possibly lead her to any kind of loss, which is not an option at the moment. Eliminating that, the options left are CDs and money market accounts.

Another possible solution to her problem can be to keep a hold on to the $100,000 which she would require back in a year or two. This will provide her with liquidity with her money, and she will not have to pay any fees for the matter, but she will have an immediate access to that money.

For the other $100,000, one could recommend her to go for fixed index annuity using the life insurance companies. It is highly beneficial for a person, and it offers some great benefits to the person buying. Here are some of its benefits:

• Your deposits have a 100 percent guarantee on them. There is no way you are going to lose them.
• Your account explicitly depends on the market, the value growth of your account goes up as does the market, and you gain a lot of profit. If the market goes down, your money is still intact in its position; you face no loss.
• The growth of your account defer the taxes.
• A guaranteed system of income which keeps flowing lifetime. This is entirely under your control, and you get to decide when and how to turn it on.
• There are no annual fees charged for management

There is one other possible solution to the problem, the $100,000 which will be required by the lady is nearly half the amount she received, and it cannot be the target of any risks yet, so it is better to just take a more aggressive approach on this one and invest it in short-term investments like, Treasury Bills.

The short-term investment indicates that the investment should mature out in a year or two, which is around the time, the lady would require it. While there are a lot of other options for this one, the other $100,000 might require attention as the lady must first decide after how much time she would need it back, and how much of that part would she require during her days of retirement.