11 Dec I made an investing bet. How can I win?

Q. I made a bet with my brother over Thanksgiving that I could do better in the stock market than he can. We decided to both put $1,000 in new brokerage accounts. Trading can start on Jan. 1 and ends three months later. Any tips on how I can win?
— All in good fun

A. Glad to hear you had a Thanksgiving with your family.

We hope it’s a good-hearted bet.

You are asking about short-term investing, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.

“When someone asks me about investing for a period of less than five years, I always tell them to buy a Certificate of Deposit,” he said. “You might not make much in a CD, but you won’t lose money either.”

But in your situation, you not only want to make money, but you want to beat your brother.

“Whoever wins this wager, I hope you realize it was due to luck and not skill,” Kiely said. “You can invest in a S&P 500 index fund. You could make money in three months, but you can also lose money too. You can invest in options and make a lot of money. You can also lose a lot of money.”

He recommends you buy an S&P 500 index fund with an eye on the long term, and just “pray that it beats your brother for the first three months,” Kiely said.

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This story was originally published in December 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.