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I am about to receive a $15,000 bonus for accepting an offer of employment. The catch is that it must be surrendered within 30 days of termination, voluntary or for cause, until two years have elapsed. No matter how unlikely a termination might be, I feel like trying to protect the principle against market fluctuations or other negative events. Can anyone recommend a good way to safely make use of this bonus during the two year period?
Gene
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You should probably park the funds in a money market account until the two years are done and it is permanently yours. The money will make a bit over $50 a month (at 4.5% interest which is the typical rate at brokers and mutual fund families). You could set up a DRIP for $50 a month to put the money to some use if you don't feel like waiting.

http://www.fool.com/school/Drips.htm

Patrick

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<< I am about to receive a $15,000 bonus for accepting an offer of employment. The catch is that it must be surrendered within 30 days of termination, voluntary or for cause, until two years have elapsed. No matter how unlikely a termination might be, I feel like trying to protect the principle against market fluctuations or other negative events. Can anyone recommend a good way to safely make use of this bonus during the two year period?
Gene >>

Hi Gene and a Foolish Welcome to You!

Ahhhh. It's the old signing bonus with a sting bit eh?

First Congratulations! I never met anyone before who had a signing bonus. But some of my CS cohorts deserved one though.

For a bit more risk and a bit more return consider a short term bond fund. Patrick's suggestion of a money fund is probably the simplest way though.

If you want to spring some of that $15k loose consider buying a treasury zero due in two years plus a bit and plan on using the zero as collateral for a loan if you get cut loose. There is more risk here. Be aware of that. I'm not sure I would do this but I wanted to give you some alternatives.

Foolishly,
Peter Lincoln
TMF BALDer
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