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 2020-11-04 05:07:34. Republished by Old Post Promoter
Related Articles- 4 Tips for College Students Budgets /caption] If you are a college student, then your primary focus is probably set on your studies and trying to maintain your education so that you will be benefited in the future. Unfortunately, one of the things that you may not be putting enough consideration into is how you are……
- 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 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,……
- 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……
-
A Comparison of Low-Risk Savings and Investment Options With the recent major decline of the stock market, many investors are looking for safe places to stash their money until the market stabilizes and begins a recovery. Others have decided they simply can no longer afford the risk associated with investing in the market. If you’re looking for a……
- Asset Allocation This topic has been getting more and more press and I think that’s great, since most people don’t give it the importance it deserves. Instead of working on asset allocation and letting the portfolio do it’s thing, people want to constantly tweak and buy and sell and it’s just too……
- 10 Money Making Tips – Everything You Needed to Know to Make Money in Todays Market 1. Maintain a good credit score! It will save you thousands of dollars in the short and long term when you need to borrow money to buy a car or a home. Creditors will give you an interest rate and the loan amount based on your income and credit score.2…….
-
Investing Rules of Thumb One of the biggest rules of thumb that you can keep in mind when it comes to investing is to look at three different variables in everything that you do. These three variables are liquidity, risk and returns. Liquidity is how fast or how easily you can convert an investment……
-
Does Your Financial Future Look Gloomy? While no one can look into a crystal ball and determine where they will be financially in twenty, thirty or forty years, there are some early warning signs that may indicate that the future might be a bit gloomy. The key to successfully preparing for your future is to avoid……