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- Breaking Down Budgeting A personal budget is simply a spending plan. Before you work on personal budget planning you need to have a good idea of where and how your money is being spent. It can be a tedious process, but it can also be a true eye opener if you are not……
- 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,……
- What Are the Best Small Investments? In times of uncertain economic future, it is important to look at your investment strategy and tweak it as needed. One of the ways that you can improve your portfolio is to take on small investments with lower risks associated with them. Taking in smaller……
D.R.I.P.s
- Free Investment Research Can Make Your Money Profitable Do you still recall learning how to conduct research in high school and college? If you are tired of researching subjects for school, it may be difficult for you to come up with a good reason to continue conducting research as an adult,……
Research Investments.
- Save Money with These 4 Tips There are ways that you can save money, and all you need to do is learn about managing money wisely to do it. You are not necessarily being frugal, per say, but rather you are learning how to be wise in the decisions……
Balance your checkbook!
- Hey, Brother, Can You Spare A Dime? There are many ways to secure loans these days, but due to the sub-prime mortgage crisis, banks and other financial institutions have been much tighter on their guidelines to lend. It seems you need an almost perfect credit score these days to get a low interest rate. Now that this……
- Penny Stocks Penny Stocks are widely supposed to be risky investment instruments among investors because of the many drawbacks associated with them. One of those usually cited is that penny stocks hardly change hands due to lack of market support and so selling them might not be that easy for investors. [caption……
- Financial Goal for 2008! Patrick at CashMoneyLife.com is hosting the first Carnival of Financial Goals next Wednesday (December 5th). He’s asked people to write blog posts for the carnival, which will also be entered in a contest to win an iPod. The goal has to be SMART, and he’ll tell you what that means…….
- Secrets Make Money – Your Internet Business Could Do With Article Marketing Here are my weekly money savings tips: 1.euro money 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……
- Are single stocks too risky? If you’ve listened to the Dave Ramsey show for any length of time, you’ll hear him say that he doesn’t invest in single stocks. Instead, he invests in “good growth mutual funds and paid-for real estate”. His reasoning is that single stocks are too risky. I wonder though, is that……
Tags: banks, bet, Bonds, due diligence, high yield savings, homework, interest rate, Investments, Money, personal finances, personal financial adviser, professional broker, rate of return, risk analysis, safety net, savings account, stock, streams of income