Safe Investments allow you to reduce the risks you take, to protect your portfolio against inflation and to slowly grow your nest egg without risking it all. Here are the top safe financial investments you can add to your portfolio.
1. Precious Metals
Gold, Silver and other precious metals are a popular form of investment because they will protect you against inflations. The value of the precious metals you invest in might fluctuate over the years but should remain steady. This is not a portion of your portfolio that will grow considerably but this is a good way to offset other risky investments. Precious metals have other advantages, such as always being in high demand and being very easy to liquidate if you choose to invest in coins and bullion.
2. Certificates of Deposit
Certificates of Deposit or CD's are a great way to safely invest your money since there is a guaranteed return. The downside of CD's is that your money is tied up for a while and that the returns are usually low. However, there are no risks since you cannot lose your money and you will know exactly what the return on this investment is.
3. Treasury Securities
Treasury securities are backed by the government, which makes them one of the safest investments. You can invest in Treasury Bonds, Notes and Bills depending on the duration of the investment you are looking for. You can purchase Treasury Securities through banks and brokers and the original cost depends on current offer and demand so you can actually invest in Treasury Securities at a very interesting price if you wait for the right moment.
4. Bonds Funds
Bond funds are one of the top safe financial investments you can add to your portfolio. You can choose to invest in government bond funds, municipal ones and corporate ones. Bond funds are liquid and you can buy or sell shares when you want to. The returns are typically higher for corporate bond funds but there are tax advantages associated with investing in government or municipal bond funds.
5. Savings Accounts
Savings accounts are a good way to invest your money if you do not want to take any risks and need to have access to your money in case of emergency. You can easily find savings accounts and will know exactly what the return is. You should also consider opening a money market account if you want to keep a larger sum in your account. Find out about the fees associated with these accounts to make sure you can avoid paying them by maintaining a sufficient balance in your savings account.
The downside of safe investment is that returns are typically low. However, it is important to balance your portfolio if you have other investments with higher risks. Focusing on this type of safe investments is a good strategy if the market does not look favorable to other strategies or if you cannot afford to take any risks.
Posted on 2/28/2017 at 6:28:00 AM