Well, if you are not willing to take any risk whatsoever, then I would suggest not investing the money in anything, and certainly not in stocks, which will definitely have risk even if you had a well balanced portfolio of stocks and bonds. Even bonds have risk, just different risks than stocks (e.g. default risk, interest rate risk, etc.). Based on the information you have provided, I would suggest putting your money into a plain savings account. It won't earn much (even the online banks are only paying around 0.75 - 1.25% annually right now), but it will be FDIC insured and will not be subject to the markets, so you know that if/when you need the money, your principal will be in tact. A final note is that even cash carries some risk - most notably, inflation risk. In other words, due to inflation, the $3,600 will have less purchasing power each year than it does today. Best of luck.
Please do some shopping. Look at either fixed or indexed annuities. Many of these come with start-up bonuses that alone will return more than several years of sitting in a savings account. These are guaranteed by the insurance carrier so it can be important to select a strong carrier. That being said, most states participate in a program that provides an additional safety net in the case of insurer default.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.