Short term investment with lowest tax/fees/etc

[FerrumB5]

Hello All,

here's my situation. I will need to pay 5k for DW tuition in April 2016 (and then again another 5-7k in Fall). Right now this money sits as cash and depreciates with inflation. What would a Mustachian do in this case? Investing it and selling in 5 months will possibly cause short term cap gain and tax and gain itself is not guaranteed (and I do need to pay the initial invested amount towards tuition)

Note: I have Vanguard taxable with VIMAX

Open a short term CD? This will come at 0.00000x%
Do nothing? Probably the safest option :)

Thanks!

[CanuckExpat]

In terms of where you hold your investment:your forum profile says Illinois, and you say you are going to pay for tuition. Can you put it in a 529 to get a tax deduction?

[Frankies Girl]

For money needed in less than 5 years, use a high yield savings account. I use Ally, but there are others available - mostly 0.9 to 1% earned.

You should not invest any money that you'd need in that short a time frame.