If you're new to investing or simply looking for a lower-risk portfolio, it can be overwhelming to decide where to put your money. Fortunately, there are many safe investments that can provide modest returns without a lot of risk. In this article, we'll explore 12 of the best safe investments to consider.
High-Yield Savings Accounts
High-yield savings accounts are a great option for those looking for a safe investment with a relatively low barrier to entry. These accounts typically offer interest rates higher than traditional savings accounts, making them a good choice for those looking to grow their savings.
Certificates of Deposit (CDs)
CDs are another safe investment option that offer higher interest rates than traditional savings accounts. With a CD, you agree to keep your money in the account for a set period of time in exchange for a higher interest rate.
Money Market Funds
Money market funds are mutual funds that invest in low-risk, short-term debt securities. They're a great option for those looking for a safe investment with slightly higher returns than savings accounts or CDs.
Government bonds are considered one of the safest investment options available. These bonds are issued by the government and are backed by the full faith and credit of the US government.
Corporate bonds are issued by companies as a way to raise capital. They're considered a relatively safe investment option, as long as you stick to investment-grade bonds.
Treasury Inflation-Protected Securities (TIPS)
TIPS are a type of government bond that's designed to protect investors from inflation. They offer a guaranteed return, making them a great option for those looking for a safe investment.
Municipal bonds are issued by state and local governments to fund public projects. They're considered a safe investment option, as long as you stick to high-quality municipal bonds.
If you're looking for a safe investment option with the potential for higher returns, consider dividend-paying stocks. These stocks pay a portion of their earnings back to shareholders in the form of dividends.
Real Estate Investment Trusts (REITs)
REITs are a type of investment that allows you to invest in real estate without actually buying property. They're a great option for those looking for a safe investment with the potential for higher returns.
Gold is considered a safe investment option in times of economic uncertainty. It's a great way to diversify your portfolio and protect your wealth.
Exchange-Traded Funds (ETFs)
ETFs are a type of investment that allows you to invest in a diversified portfolio of stocks or bonds. They're a great option for those looking for a safe investment with the potential for higher returns.
Robo-advisors are automated investment platforms that use algorithms to build and manage your portfolio. They're a great option for those looking for a safe investment option with low fees.
When considering safe investment options, it's important to weigh the potential returns against the risk involved. While these 12 options are all considered safe investments, they offer varying levels of risk and potential returns. Consider your investment goals and risk tolerance before choosing the best option for you.