Loanio

3 safe investment ideas.

Given the shaky financial markets across the world today and the extreme ups and downs that are being seen from one day to the next in the US market, you might be wondering what are safe investments, and how can I be sure I won’t lose all the money I invest? The short answer is that there are few investments that are entirely safe—there’s at least a little risk involved in almost all of them. But there are a few investments that are generally considered safe, even though you might not get much of a return when you put your money into these types of investments. One big benefit of the higher risk investments like stocks, after all, is the opportunity to see huge gains—you’ll sacrifice that when choosing these safe investments.

Treasury Bills or T-Bills are low-risk, safe investments.

You can purchase them to mature in 3, 6 or 12 months, so they’re short-term investments so fluctuations of interest rates over a long-period of time won’t effect these investments very much. You pay less than the face value of the bill and once it matures it can be cashed in at face value. While these are guaranteed by the government and very low-risk, they also usually don’t show much of a return on your investment. Bonds are a similar safe investment like a T-Bill, but are a longer-term investment that won’t mature for a set number of years.

CDs (certificates of deposit) are also safe investments.

You purchase the CD with a locked in interest rate and when the CD matures in 3, 6 or 12 months, you can withdraw the cash you paid plus the interest. The return on CDs is generally quite small, but still more than you would earn if you’d put that same amount of cash in a savings account. And unlike T-Bills, your CD is insured by the government for up to $100,000 so you can’t lose your money. You will, however, pay a penalty if you need to withdraw the cash before the CD has matured.

The third type of these safe investments is the money market.

Money market investments are considered short-term investments because they typically mature in six months or less. A money market account typically requires an initial deposit, sometimes $1000 is the minimum, and that minimum amount must be held in that account for a set amount of time. The money in your account draws interest, but it’s ideal for those who might need to tap into that money over a few months time. Money market accounts will give you a checkbook so that you can use that money if needed, but if you slip below the minimum balance you will be charged a penalty.

These safe investments will earn you interest over a short or long period of time, depending on the investment you choose, with all of them paying more than interest-bearing checking or savings accounts.

Photo Credits: 1

Originally posted 2008-12-25 05:48:20. Republished by Blog Post Promoter

• What Are Safe Investments? /caption] If you are putting consideration into investing money, but you are not sure which is the safest way to invest your money, then your first stop should be someplace where you can get professional advice on the subject. The last thing that you are going to want to do......
• Do You Need a Money Manager? /caption] If your idea of organizing your finances is throwing a receipt in a big pile, you may want to consider the benefits of hiring a money manager. There is a new trend in the financial world where daily money managers are becoming very popular, and for many consumers, they......
• Personal Budget Planning is Crucial! [/caption] Personal budget planning is absolutely crucial if you want to build personal wealth and overcome things like the credit crunch and the current problems that the economy is experiencing. The word "Budget" is one that worries a lot of people because it often seems more like a hassle and......
• Teach Teens to Save Money /caption] One of the biggest reasons why having a teenage child can be difficult is because teenagers tend to spend money easily and freely without any real regard for what goes into earning that money in the first place. Teenagers tend to spend a great deal of money on clothes,......
• What Are the Best Small Investments? [/caption] In times of uncertain economic future, it is important to look at your investment strategy and tweak it as needed. One of the ways that you can improve your portfolio is to take on small investments with lower risks associated with them. Taking in smaller rewards and returns may......

• what if saving was stupid Personal finance wisdom teaches us that you should always "save for the future." You should take your current earnings and put at least some aside for the future.  That future may be a time when you need an emergency fund (health crises, car repairs, etc.) or a child's education,......
• The Tri-Level Emergency Fund This past Saturday evening I joined radio talk show host Michael Finney of KGO AM 810 San Francisco on his weekly radio show, "Consumer Talk with Michael Finney," to discuss my recent post about safe places to keep cash at home. During our conversation I shared with him my Tri-level......
• Different Types of Short Term Investments Short term investments are the most ideal form of investing if you want to invest over a period that is relatively short. Cash manager accounts make it possible to access your money whenever you need to. Fixed term deposit investments secure your money for the entire length of the term.......
• The 7-Day Turnaround, Day 7: Invest For An Early Retirement This is the seventh article in Frugal Dad’s week-long series, The 7-Day Turnaround: One Week to Change Your Family's Financial Destiny. Each day brings a new step to implement and help you get control of your finances. The word "retirement" has always evoked day dreams of playing out the remainder......
• Save Money Ideas - Tips For Saving Money This Christmas This holiday season "save money ideas" are more important than ever. The declining economy makes this a necessity for many of us. Our kids are already planning their Christmas want-list with much excitement and anticipation. There are numerous people who love to give gifts because of the sure joy......