$150K in two years. I would put about $50K in each of:
– Countryfried Bank CD (pays 4.2% and is FDIC insured)
– FXE (Euro ETF, pays over 3.5%)
– A high-dividend stock, like Pfizer or Hugoton Royalty Trust
If you feel more risk-averse, increase the first and reduce the third. Do the opposite if you feel more adventurous. You can also replace the third option with Vanguard’s 500 Index fund. The FXE is to protect you in case the housing bailout and further interest rate cuts put the exchange rate at $2.5 per euro by 2010. If the euro stays flat, at least you’ll earn a dividend.
