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

• 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......
• 3 Tips for Teen Investing Parents like to complain that their teenage children do not listen to them. However, when it comes to matters dealing with money, the opposite is actually often true. Teenagers often welcome the advice that their parents have to give regarding finances, money management and investments. In the past few years,......
• Child Savings and Investment /caption] Having children is not a cheap proposition these days, especially when you consider long term costs. The older your children become, the more they are going to end up costing in the long run. High education prices, for example, continue to soar making it nearly impossible for you to......
• Traditional Magazines vs. Online Magazines /caption] While many people subscribe to a variety of financially-oriented magazines to keep abreast of the latest economic happenings, others find that online finance magazines are a great way to stay up-to-date on the latest financial news, all with just a click of the mouse. Online finance magazines have advantages......
• How Do Savings Bonds Work? Is My Money Safe if I Purchase Them? /caption] These are questions most people ask when they consider buying savings bonds. Yes, your investment in savings bonds is one of the most safe investments you can make. You're purchasing the bond and giving the government cash, which they pay you interest back on at a later date. It's......

• Investing Safely You want for your money to work for you and to grow, right? But taking risks makes you feel uneasy? So is there a way for you to invest more safely? Of course there is! There is a rule that is associated with investing that is ancient, and yet remains......
• Why Certificates of Deposit Are A Good Idea Today's article is written by guest blogger Jim of Bargaineering. If you've saved up a few dollars and aren't sure if you should put them in the stock market or stick them in your mattress, let me give you another suggestion: put your funds into a certificate of deposit (CD).......
• Borrowing to Invest: Does it Make Sense? A lot of financial counselors are now suggesting to their clients that they should borrow money on their home with the use of a home equity loan to invest into the stock market. These people of course are earning a nice big commission from selling the home equity loan and......
• Increasing Your Liquidity In these scary financial times, one way to make yourself feel more secure about your fiscal position is to increase your liquidity. Before you let this term intimidate you, you should understand that liquidity isn’t some fancy thing that only rich folks enjoy. Liquidity simply means having your money is......
• Three Investing Lessons Learned the Hard Way My wife got her Thrift Savings Plan (TSP) update the other day. (For my civilian readers, this is the military version of the 401k or 403b retirement savings plans). Not good times. I hadn't noticed what she was looking at, so I just suspected it was some junk mail. I......