Safe investments are the safety net of your personal finances.
If you are trying to accumulate wealth, set aside money for the future or you would just like to have a few more streams of income coming in, investments are usually the first thing people turn to. However, the most common question that many people have is what are safe investments? This is a question that can really be only answered by your personal financial adviser, since everyone’s finances are different. However, there are a few general guidelines to use to help you determine what are safe investments.
The first thing to ask when you are trying to figure out what are safe investments is how much risk is involved. For example, investing in a stock can be risky, while putting your money in a savings account that has a respectable interest rate is much less risky. If you are not working with a professional broker, then you may need to do your own research to determine just how risky a stock is. This should only be done if you are familiar with risk analysis and performing due diligence. Most people prefer to work with a broker to help them with this process.
The next step in determining what are safe investments is to look at the history of the company. Whether it’s a bank offering a high yield savings account, a company going public or even bonds, it pays to do your research and your homework. Established companies with good track records are usually a much better bet than a new company that has no record you can follow. However, this is not a hard and fast rule, as is evidenced by the numerous recent failures of big name banks.
Bonds are usually considered to be safe investments, but for many, the rate of return is just not acceptable. That is probably the number one issue for those asking what are safe investments? They need the security that these investments can provide, but they also expect a higher rate of return. In most cases, the safest investments will also have a very low rate of return. Risk offers rewards, but when you’re just starting out, high risks should most likely be avoided.
When you ask the question, what are the safest investments, your own personal situation will play a major role in how it is answered. For example, a rental property may be a safe investment for those that are familiar with property maintenance and the real estate market. But for someone that has no prior experience with housing investments, this would not be considered to be a safe investment.
Ask your financial adviser what are the safest investments and see what they recommend for your portfolio. They will understand your financial situation and can help you create a plan that will minimize your risks while maximizing your returns. If you do decide to go out on your own, remember that low returns on a safe investment may be smarter than the potential of a high return that is never attained.
Photo Credits: 1
Originally posted 2008-11-04 05:07:34. Republished by Blog Post Promoter
Related Articles -
Teach Your Teen About Saving Money 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, shoes,...... -
Teens Saving Money [/caption] One of the best ways to build a strong financial foundation in teens is by starting a savings plan early on. Over the past few years, there have been more teens saving money and the results are clear. When you take the time to teach good financial practices to...... -
Do You Ask Yourself, How Do I Plan for Retirement? /caption] Don't you think that every working man and working woman is entitled to enjoying a secure and comfortable retirement once they are no longer working? Due to the fact that we have taken so many strides in health care and in medicine, many people are living longer and healthier...... -
3 Types of Safe Investments /caption] 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...... -
Loanio Roundup - P2P Lending and More /caption] Good morning readers and welcome to another edition of Loanio's weekly roundup. Below you'll find several great articles under the categories of small business, the economy, p2p lending, and investing. We hope you find them helpful and interesting. The Economy: Smart Money says Traders are Cautious After Mixed Economic......
Related Sites -
Compound Interest Week: Real Interest Rates of the Stock Market Yesterday we learned that the real interest rate of return on high-interest savings accounts is low - a really low 2%. We found that it would take 35 years for money to double at that percentage. Today, I'd like to look at real interest rates of the stock market. I...... - Review of Bill Schultheis' The New Coffeehouse Investor The author's marketing company kindly sent me a complimentary company of Bill Schultheis' latest reworking of his book: The New Coffeehouse Investor. According to the "about the author" section in the book, Mr. Schultheis is an investment adviser with Soundmark Wealth Management, LLC, a fee-only registered investment adviser located in......
- Tracking Your Spending For A Month Can Help Open Your Eyes To Unnecessary Expense. Due to some pressing issues here on the homefront, I will be running a few guest posts this week. This is a post from Peter who writes for Bible Money Matters, a blog about personal finance and faith. You can subscribe to his RSS feed here or via email here.......
-
Rules To Build A Basic Stock Portfolio Our contributing writer, Tim Parker, is a stock picker who’s built a basic stock portfolio. Here, he explains his stock investing strategy. If you’re interested in The Digerati Life’s take on stock market investing, you can review this post on how to beat the average investor’s returns. Image from smh.com...... - Sunday Money Roundup - Stocks and Things Welcome to this week's edition of the SMR. Browse by category for your weekend reading material. What other categories would you like to see here? Let me know - leave a comment! College | Home: Kirberts says you can be in the school you want with affordable student loans. School......
