I have $170,000 cash to be used for all my expenses during 5 years of school and am looking for a safe, hands-free place to invest it. I have worked out my budget for the next 5 years and this money should be enough to cover my expenses if it grows above inflation. I am not interested in purchasing real estate, owning a business, or managing a large stock portfolio, so I would be grateful for any ideas regarding the best way to invest this money for the next 5 years. I will need to be able to withdraw 20% of the money each year to cover my expenses. Money-market savings accounts and certificates of deposit do not appear to have high enough interest rates to be viable options. The only option that I have found so far are Treasury Inflation-Protected Securities (TIPS) and Vanguard Inflation-Protected Securities (VIPSX) looks to be the best TIPS, but I don’t know enough about inflation, diversification or investing to know if putting the entire $170,000 in a TIPS for 5 years is the best option. I would greatly appreciate any financial planning advice regarding my situation. If you could map out the specific investment vehicles or sketch a composite portfolio for the $170,000 I would be very thankful. This would be easier for me if I was investing for the long term, but my 5 year window, expense requirements, and the current inflation outlook and bear market make my situation very confusing. Thanks for your help.

Get a checking account if you don’t have one. Put 20% ($34000) into it and thats your first year "budget". I’d put another 20% in a 1 year cd, and when it matures, add it to your checking account for your second year budget. Another 20% in a two year cd and another 20% in a three year cd and the final 20% in a four year cd. The return will be a little more with each year and cd’s are generally pretty safe investments, so your risk is very low. I wouldn’t suggest investing anything in a risky venture–your education will be your most valuable asset and you don’t want to risk that. Good luck.