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Dear Nancy,

I will have about $12,000 coming to me shortly and need a 100 per cent safe short-term investment for it.

I will need to have access to about $1,000.00 of it per month for the next 12 months – so drawing down the balance to nil in one year.

Can you suggest an investment that has minimal risk and is cashable monthly?

Robyn



Dear Robyn,

Since you are in need of a guarantee of your principal, I suggest looking at a high-interest savings account. It would allow you monthly access without any penalty. You can also consider putting the funds into a tax-free savings account to shelter the small bit of interest income it would pay over the 12 months. This is, of course, providing that you have the allowable contribution room for the TFSA.

Nancy





Nancy Woods, CIM, FCSI, is an associate portfolio manager and investment adviser with RBC Dominion Securities Inc. To ask her a question, send an e-mail to asknancy@rbc.com or visit her web site at nancywoods.com

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