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Mar 21, 2024 · Low-risk investments are a great option for conservative investors who want to protect their money from potential losses while still benefiting from modest growth.
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- Money market accounts. These are essentially savings accounts, but they allow you to spend directly from the account (unlike a savings account), with a limited number of transactions per month.
- Online high-yield savings accounts. These are fundamentally similar to typical savings accounts, but by operating strictly online, these banks don’t have to spend money on brick-and-mortar operations.
- Cash management accounts. The nature of these accounts varies slightly between providers today, but most of these products behave similarly to an online savings account.
- Certificates of deposit (CDs) Banks offer CDs because it gives them a set amount of cash upfront for a set period of time, which they can use to lend to other customers or invest.
- High-yield savings accounts. While not technically an investment, savings accounts offer a modest return on your money. You’ll find the highest-yielding options by searching online, and you can get a bit more yield if you’re willing to check out the rate tables and shop around.
- Money market funds. Money market funds are pools of CDs, short-term bonds and other low-risk investments grouped together to diversify risk, and are typically sold by brokerage firms and mutual fund companies.
- Short-term certificates of deposit. Bank CDs are always loss-proof in an FDIC-backed account, unless you take the money out early. To find the best rates, you’ll want to shop around online and compare what banks offer.
- Series I savings bonds. A Series I savings bond is a low-risk bond that adjusts for inflation, helping protect your investment. When inflation rises, the bond’s interest rate is adjusted upward.
Jul 22, 2024 · These investment strategies can help retirees balance risk and return to protect capital and generate income.
- Certificates of deposit (CDs) CDs provide reliable, fixed-rate returns on a lump sum of money over a fixed period of time, such as 6 months, 1 year, or 5 years.
- Money market funds. Money market funds are mutual funds that invest in short-term, low-risk assets like Treasury and government securities, commercial paper, or municipal debt—depending on the focus of the fund.
- Treasury securities. This investment option is backed by the US government and comes in 3 types: bills, notes, and bonds. Bills mature in one year or less, notes span up to 10 years, and bonds typically mature in 20 to 30 years.
- Agency bonds. Government agencies and government sponsored enterprises (GSEs) issue bonds as a way of raising money. GSEs include the Federal Home Loan Mortgage Corporation (Freddie Mac), the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Banks and the Federal Farm Credit Banks.
Mar 21, 2024 · Liquidity: High. U.S. Treasury securities are considered to be about the safest investments on earth. That’s because they are backed by the full faith and credit of the U.S. government. Government...
Aug 11, 2023 · Bonds offer risk-free returns of over 5% for the first time in two decades. Here's how to capitalize on the easy money without tying up your cash for years at a time.
