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5 Safe Investments

Safe Investments Are Designed To Protect What You Have


Looking for a safe investment? Here is a list of five investment choices that are considered safe. Their primary goal is to protect what you have rather than earn you a high return.

1. Bank Savings Accounts

A bank savings account is a type of account designed to simply hold money that you do not need immediate access to. When contrasted with checking accounts, bank savings accounts tend to pay a slightly higher rate.

2. Certificates of Deposit

Certificates of Deposit (CD’s) are one of the safest investment vehicles out there. If you want to be at the low end of the risk/reward spectrum, CD’s might be the right choice.

3. Government Issued Securities

Investments issued by the U.S. Government are considered very safe. These include things like Series EE/E or I Savings Bond as well as Treasury Bonds, Notes and Bills. You can purchase these safe investments by opening an account directly with the Treasury and investing as little as $25 for savings bonds and as little as $100 for Treasury Bonds, Notes and Bills.

4. Money Market Accounts

Money market funds are a popular cash management tool and although they are not as safe as a bank savings account or certificate of deposit, they are still considered a secure place to park cash.

5. Fixed Annuities

A fixed annuity is a contract with an insurance company. You give them your money to manage, and in exchange they pay you a guaranteed return. Usually the interest on a fixed annuity is tax deferred. Fixed annuities are usually not liquid, which means you will not have easy access to the funds like you do with a bank savings account or money market account.

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