When investors ask this question, what they’re really saying is simple:
“I’ve worked hard to build this capital. I don’t want to gamble with it-but I don’t want it sitting idle either.”
This is not a growth problem.
It’s a capital stewardship problem.
And stewardship requires a different mindset than chasing upside.
Start with the right objective: preservation first, return second
When your time horizon is 12 months, the rules change.
The goal is not to maximize return.
The goal is to avoid irreversible mistakes.
That means prioritizing:
– Capital preservation
– Predictable cash flows
– Structures that limit downside
– Assets that are less dependent on daily market sentiment
If you get those right, returns tend to take care of themselves.
The biggest risk over 12 months is forced decision-making
“Silly risk” rarely looks silly at the start. It usually shows up later-as a lack of options.
Over short horizons, the greatest danger isn’t volatility alone, but liquidity mismatches:
– Assets that can’t be exited when plans change
– Strategies that rely on favorable markets at a specific moment
– Capital that looks safe until everyone wants the exit at once
The best place to park money is somewhere that lets you stay calm if conditions shift.
Think beyond public markets and bank balances
Cash feels safe, but over time it quietly transfers value away through inflation and opportunity cost.
Public markets, on the other hand, can introduce noise and timing risk that simply isn’t necessary over a one-year window.
This is where select alternatives can play a thoughtful role-not as speculative bets, but as non-correlated sources of stability and income.
Income-focused private credit: designed for shorter horizons
At a high level, private credit is well-suited to this kind of problem.
Why?
– Cash flows are contractual rather than sentiment-driven
– Returns come primarily from income, not price appreciation
– Structures-such as seniority and security-are set upfront
When managed prudently, private credit can offer predictable yield with controlled risk, especially when floating-rate structures align income with prevailing conditions.
For investors parking capital temporarily, this can provide a productive middle ground between idle cash and market volatility.
Real assets with scarcity value: the case for cask whisky
Some assets derive their resilience not from contracts, but from scarcity and time.
Cask Scotch whisky is one such example. Properly selected and stored, it:
– Is disconnected from public market cycles
– Gains value as it ages, not as markets rally
– Benefits from global demand for premium, finite supply
Over a 12-month period, this kind of asset can serve as a store of value with asymmetric upside, particularly for investors who value diversification and tangibility.
It’s not about speculation-it’s about owning something real that improves with patience.
Select private equity: only when structure and partners matter
Private equity is often misunderstood in short-term contexts. It’s not about exits in 12 months-it’s about entry quality.
Co-investing alongside experienced family investment offices can allow investors to:
– Access institutional-quality deals
– Enter at disciplined valuations
– Rely on partners with long-term alignment
While not designed for short-term liquidity, select private equity allocations can make sense for capital that doesn’t need to move-but does need to be thoughtfully placed.
The key is selectivity, not scale.
A portfolio mindset beats a single answer
The smartest investors rarely ask, “What’s the one best place?”
They ask:
“How do I balance safety, income, and optionality?”
For $1–5M over 12 months, that often means:
– Keeping liquidity where it truly matters
– Putting some capital to work in income-generating strategies
– Diversifying across structures, not just asset labels
This reduces reliance on any single outcome-and that’s where real safety comes from.
Parking capital is not about standing still. It’s about choosing not to rush.
When you prioritize resilience, diversification, and thoughtful structures, you give yourself the most valuable asset of all: the ability to decide later, from a position of strength.
That’s how you avoid silly risk-and quietly do something sensible with your money in the meantime.
