When you think about investing, you probably wonder how risky can it be. Of course, the more risks you take, the higher the return is, but there is no need to go wild to earn money.
Fortunately, there are a lot of options for investors at all levels. If you are not comfortable with the idea of risking your money, there are safe options for you to consider.
Even though any investment has its risk, there are ways to put your money to work safely. Of course, returns are usually lower, but any return is better than no return.
Here are some low-risk investment options for you to consider:
Traditional Savings Account
This is a safe investment you can access with any bank or credit union. The returns on this one are non-existent but in the long run, you will get some interests. The good thing about this option is that your earnings won’t depend on the market fluctuations which, are many. Also, your capital is insured up to $250,000 via the FDIC.
Certificate of Deposits (CDs)
A certificate of deposit entitles you to get a fixed interest rate over a given amount of money you leave in the bank for a certain period. Your money will be inaccessible to you for as long as your CD lasts, and it can be up to a year, but in return, the bank will pay you interests.
Fixed Annuities are a low-risk investment option you can get into with an insurance company. You provide a certain amount of money and, in return, they pay you interests. Interests are usually tax-deferred.
The thing you need to keep in mind when it comes to fixed annuities is that they are not very liquid, meaning you won’t have easy access to your money until the term is up.
Though conservative, treasury securities will provide a range of returns, depending on the type and length you decide to invest in.
Treasury securities include bonds, notes, and bills and they have different levels of maturity, ranging from days to up to 30 years. The good thing is that if you need your money before the time is up, you can still get a good price when you sell.
There are a lot more low-risk investment options available, but these are the safest you will find. A good way to invest in an even safest way is by diversifying your portfolio, so you always have your money working for you in different places.