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

• Are Your Gadgets Sucking Your Wallet Dry? /caption] We live in a digital age and the vast majority of us rely heavily on numerous technological devices to get us through our days. What we may not realize however is just how much these gadgets cost to run. Companies throughout the United States are finding out that they......
• Prepare for Your Retirement Now /caption] If you are young and just beginning a career, then the concept of retirement planning may seem so far away that it is the last thing that you put any consideration into. However if you are on the opposite end of the fence and retirement is just around the......
• Save Money by Managing Your Money /caption] There are plenty of ways for you to save money simply by managing it. It does not necessarily mean that you have to be frugal, but rather you simply have to be wise in the decisions that you make. Too many people these days are finding that they were......
• 8 Tips for College Student Budgets [/caption] Below are eight tips for college students about money and finances. 1. Track your Expenses If you track your spending for a few weeks, you will be better able to figure out where your money is going. Are you spending an exorbitant amount of money on Starbucks? You may......
• When Disaster Strikes [/caption] As Hurricane Ike took aim for the Gulf Coast, the financial markets reacted much in the way that they were expected to. Gas prices jumped to $5 a gallon along the gulf coast, and many expected the price jump to go nationwide, particularly if the hurricane caused damage to......

• Is a Brokered CD Worth the Bother? A brokered CD is about as easy to understand as a regular, fixed certificate of deposit, as the difference between each on is just what the name implies: you buy it through a broker. Immediately you'll think this is a colossal waste of money, as you'll either be charged a......
• 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......
• 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......
• Safe Places To Put Your Cash In This Economy. CNN/Money has a short article up that has three places you could stash your cash where it would be safe in this crazy up and down economy. Mind you, I would not start moving your money out of investment accounts to put it in these places, but if you have......
• High Yield Money Market Mutual Fund Vs High Yield Savings Account Traditionally, I've held my emergency fund in the Vanguard Prime Money Market Mutual Fund (VMMXX).  Several years ago, the Prime fund was riding high on the then-generous short-term interest rates, its yield topping 5% and staying there for a significant period of time.  At that point, Vanguard Prime was the......