Investments That Guarantee A Return
The current economic situation has forced many people more into debt, however, while others are going into debt, there are many people out there looking for good investment options. If you have extra money, it does not make sense to let it sit in a savings account; however, many of the investment options out there are also risky. For this reason, there are many individuals who seem skeptical about where to put their money. The good news is there are options for investment that are available today and at the same time are risk free.
It is easy to confuse a good investment with a risk free investment, because not all good investments are good, yet usually all risk free investments are good on some level. When you invest in a risk free investment, you do not have to worry about losing money from the investment; hence, the term risk free investment. When you are deciding which security to invest in, anything that has the potential to cause you to lose money is typically not something that you would classify as a risk free investment. Some securities, however, do not cause loss and therefore are risk free, including, savings bonds, treasury bills, and certificates of deposits (CDs).
The wise investor will most likely consider a risk free investment not only to minimize risk, but also to save smarter when it comes to the future. One of the difficulties with investment securities is that they are not very liquid. Unlike your regular checking or savings account, you might not have access to the money in your securities or even a surety that it will be there in the future. However, with risk free investments, you can rely on the fact that the money you have invested today will at least be there tomorrow, and this is a nice comfort for many investors today.
If you are looking for a long-term risk free investment, try investing in government savings bonds. Savings bonds are a perfect long-term option for your investment, because you are investing your money with the government - an entity you can count on to be here in 20 years. Sometimes, savings bonds do not offer the highest return on investment, however there is basically no risk at all when you invest in a bond. Therefore, when you are deciding what to invest in, a savings bond is not a bad choice.
Another option for risk free investing is treasury bills or T-Bills, which are also offered from the government. The great thing about T-Bills is that they function a lot like bonds, given that they are offered from the government, however they have a much shorter term life than bonds. A typical T-Bill reaches maturity in a year or less and at the same time there is not risk of losing money. When it reaches maturity, you can expect to receive the principle back plus any interest you made on your investment.
Many people who do not invest in government securities but are still looking for risk free investments rely on certificates of deposits (CDs). Certificates of Deposits typically have a time period that ranges from one quarter to five years, and, once the CD has matured you receive the principle and the interest. And, although CDs are definitely sound investments and free from risk, they do not have the tax breaks that other investments offer; so, make sure to consider that when you are deciding which security to invest in.
When you are trying to determine what to invest your money in, you will come across a variety of different options, and you will realize that not all investment opportunities are created equal. For this reason, many people seek the advice of a financial advisor to help best advise them on what decisions should be made for their investment portfolio. Whether you work with a financial advisor or not, the one thing to remember is to be cautious and ere on the side of conservative when it comes to your investments.
Some people get careless when they are investing their money and they put it all in risky investments where a higher rate of return is possible. However, a riskier investment ultimately involves the possible of losing money; and, it is always a great idea to invest money in securities that are sound and risk free to ensure you will get a return. It used to be that the stock market and housing market seemed to always provide some sort of return, however, today that is not always true.
For this reason, you might be better off sticking with the risk free alternatives. Savings Bonds, T-Bills, and CDs are always great investment options. And, when you invest, you can be sure that at least you will not lose any money! - 23210
It is easy to confuse a good investment with a risk free investment, because not all good investments are good, yet usually all risk free investments are good on some level. When you invest in a risk free investment, you do not have to worry about losing money from the investment; hence, the term risk free investment. When you are deciding which security to invest in, anything that has the potential to cause you to lose money is typically not something that you would classify as a risk free investment. Some securities, however, do not cause loss and therefore are risk free, including, savings bonds, treasury bills, and certificates of deposits (CDs).
The wise investor will most likely consider a risk free investment not only to minimize risk, but also to save smarter when it comes to the future. One of the difficulties with investment securities is that they are not very liquid. Unlike your regular checking or savings account, you might not have access to the money in your securities or even a surety that it will be there in the future. However, with risk free investments, you can rely on the fact that the money you have invested today will at least be there tomorrow, and this is a nice comfort for many investors today.
If you are looking for a long-term risk free investment, try investing in government savings bonds. Savings bonds are a perfect long-term option for your investment, because you are investing your money with the government - an entity you can count on to be here in 20 years. Sometimes, savings bonds do not offer the highest return on investment, however there is basically no risk at all when you invest in a bond. Therefore, when you are deciding what to invest in, a savings bond is not a bad choice.
Another option for risk free investing is treasury bills or T-Bills, which are also offered from the government. The great thing about T-Bills is that they function a lot like bonds, given that they are offered from the government, however they have a much shorter term life than bonds. A typical T-Bill reaches maturity in a year or less and at the same time there is not risk of losing money. When it reaches maturity, you can expect to receive the principle back plus any interest you made on your investment.
Many people who do not invest in government securities but are still looking for risk free investments rely on certificates of deposits (CDs). Certificates of Deposits typically have a time period that ranges from one quarter to five years, and, once the CD has matured you receive the principle and the interest. And, although CDs are definitely sound investments and free from risk, they do not have the tax breaks that other investments offer; so, make sure to consider that when you are deciding which security to invest in.
When you are trying to determine what to invest your money in, you will come across a variety of different options, and you will realize that not all investment opportunities are created equal. For this reason, many people seek the advice of a financial advisor to help best advise them on what decisions should be made for their investment portfolio. Whether you work with a financial advisor or not, the one thing to remember is to be cautious and ere on the side of conservative when it comes to your investments.
Some people get careless when they are investing their money and they put it all in risky investments where a higher rate of return is possible. However, a riskier investment ultimately involves the possible of losing money; and, it is always a great idea to invest money in securities that are sound and risk free to ensure you will get a return. It used to be that the stock market and housing market seemed to always provide some sort of return, however, today that is not always true.
For this reason, you might be better off sticking with the risk free alternatives. Savings Bonds, T-Bills, and CDs are always great investment options. And, when you invest, you can be sure that at least you will not lose any money! - 23210
posted by X - Men @ 5:52 AM
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