Six Ways To Make Investments That Yields The Returns You Can Be Happy With
The stock market can seem so inviting, promising high returns, but the money can just as easily disappear. If you are looking for investment opportunities, the stock market is not the only place to consider. Here are the top six investment methods for safe returns:
1. Certificates of Deposits
With Certificate of Deposits, you deposit money for a fixed period with a bank or any other financial institution and get a fixed interest rate for that period. You can, of course, withdraw, but there will be a penalty clause. Although they pay lower interest rates, they top the list when you are looking for safe investments. This is because the principal amount is safe and it guarantees a return along with the principal at the end of the lock-in period.
2. Treasury Inflation Protected Securities
You can choose from the various bond investments offered by the U.S. Treasury. A low risk bond, Treasury Inflation Protected Securities has two growth methods. The first method is the fixed interest method that offers a fixed rated of interest. The second is the inflation protection method that offers your increase in the principal value when inflation rate grows.
3. Money Market Funds
This mutual fund keeps your investment safe. The investor also gets interest on their investment. Although the interest rate is very low, your investment is relatively safe. The risk is when the net asset value drops but that is a rare case.
4. Municipal Bonds
The great thing about Municipal Bonds is they are tax free. They are actually a loan to the government. The government issues these bonds when it needs money. You also get a high return on your investment.
5. U.S. Savings Bonds
The U.S. Savings Bonds are similar to Treasury Inflation Protected Security. They have the backing of the federal government and there is a very rare chance of default. You are guaranteed the interest you make, no matter what happens, and it is a very low-risk option. Another advantage to U.S. Savings Bonds is that you don’t have to pay state taxes on the interest, like you might with other accounts.
6. Annuities
Annuities are good long-term investments as they help stabilize the financial portfolio. When you buy an annuity, you are trading with the insurance company. You invest a lump sum amount and get a guaranteed return at an interest rate that is already determined. It is necessary to do your homework before investing in annuities. Money & Markets Stock Experts have the investing tips needed to know if the annuity is right for you.
All these are low-risk and safe investments with good returns. Since most of these are government-backed, you know that you will get back your investment with interest. Don’t fall for the options of paying a lot of money upfront for the possibility of a very quick, high return. You you will most likely loose your money if you fall for these ideas. Invest your money in safe, low-risk options, and you will be sure to make a return. Keep in mind that spreading your money out over different stocks and accounts is wise. You don’t want to loose all of your money in the event of an unexpected event.
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Category: Investing
