Investments That Guarantee A Return
The current economic situation has forced many people more into debt, however, while others are going into debt, there are many people out there looking for good investment options. If you have extra money, it does not make sense to let it sit in a savings account; however, many of the investment options out there are also risky. For this reason, there are many individuals who seem skeptical about where to put their money. The good news is there are options for investment that are available today and at the same time are risk free.
One of the most important things to understand when it comes to investing is that there is a difference between a good investment and a risk free investment, because while not all good investments are risk free. Sometimes when you invest in something with risk, there is the possibility of losing money; however, risk free investments do not pose the same risk of monetary loss. While some people like riskier investments, many people choose to invest in securities that are risk free because they are guaranteed a return on their investment. Typically, the most popular risk free investments include government savings bonds, treasury bills, and certificates of deposits (CDs).
Risk free investments are not only a less risky investment, but they can also be a smarter investment for a lot of individuals - especially those investing to save for the future. When it comes to investment securities, these assets are not as liquid as a regular checking or savings account. In other words, you cannot necessarily get the money invested in the assets back tomorrow if you need to. However, when you invest in a risk free investment, you do have a decent guarantee that the money you invested today will be there tomorrow - and, that is nice to know.
Although there are different types of risk free investments, one of the most popular risk free investments is obtained from the government in the form of a bond. A government savings bond is a nice long-term investment security that accrues interest over time; and once it matures, you can count on getting your money because you invested in the government instead of a bank or the stock market. The downside of bonds is obviously the fact that they provide a lower rate of return, yet there is no risk and you are guaranteed at least some return on your investment.
Treasury bills (commonly called T-Bills) are another form of investment that is relatively risk free and popular in today's economy. T-Bills function very similarly to bonds, except they have a different time period. While your bond investment may take years to mature, your investment in a T-Bill will mature in one year or less; thus, it is a great risk free investment for the short run investment. Also, when it comes to T-Bills, your money is guaranteed at the maturity date, so you can expect some sort of return on your investment.
Certificates of Deposits (also called CDs) are a great risk free investment for those who are interested in investing their money over a few years time period. The time period usually ranges from anywhere between one quarter and five years, and once the CD has matured, you receive the principle plus the interest. The only downside to the CD is that sometimes they do not offer the same sort of tax breaks that other investments offer; however, they are definitely sound, sure, and risk free investments.
Obviously, not all investments are created alike and this is why many people seek the advice of a financial planner to help them with their investment needs. You might be interested in talking with a finance professional as well, so that you can be best advised on what to do when it comes to investing for the future. Whatever you do decide to do, be careful and cautious and make sure that you do not invest before you are sure - especially when it comes to riskier investments.
Unfortunately, to make a better return on your investment, there has to be an element of risk involved. Therefore, the more risky an investment, usually the better the possible return might be. However, it is important to be cautious in today's difficult industries, especially when it comes to real estate and the stock market. Where it once seemed easy to make a decent return, it now is a lot more risky and a lot less people are reaping the rewards.
Because of this, try to stick with investments that are risk free. Check out savings bonds, T-Bills, and CDs for your investments. You will be happy you did. - 23212
One of the most important things to understand when it comes to investing is that there is a difference between a good investment and a risk free investment, because while not all good investments are risk free. Sometimes when you invest in something with risk, there is the possibility of losing money; however, risk free investments do not pose the same risk of monetary loss. While some people like riskier investments, many people choose to invest in securities that are risk free because they are guaranteed a return on their investment. Typically, the most popular risk free investments include government savings bonds, treasury bills, and certificates of deposits (CDs).
Risk free investments are not only a less risky investment, but they can also be a smarter investment for a lot of individuals - especially those investing to save for the future. When it comes to investment securities, these assets are not as liquid as a regular checking or savings account. In other words, you cannot necessarily get the money invested in the assets back tomorrow if you need to. However, when you invest in a risk free investment, you do have a decent guarantee that the money you invested today will be there tomorrow - and, that is nice to know.
Although there are different types of risk free investments, one of the most popular risk free investments is obtained from the government in the form of a bond. A government savings bond is a nice long-term investment security that accrues interest over time; and once it matures, you can count on getting your money because you invested in the government instead of a bank or the stock market. The downside of bonds is obviously the fact that they provide a lower rate of return, yet there is no risk and you are guaranteed at least some return on your investment.
Treasury bills (commonly called T-Bills) are another form of investment that is relatively risk free and popular in today's economy. T-Bills function very similarly to bonds, except they have a different time period. While your bond investment may take years to mature, your investment in a T-Bill will mature in one year or less; thus, it is a great risk free investment for the short run investment. Also, when it comes to T-Bills, your money is guaranteed at the maturity date, so you can expect some sort of return on your investment.
Certificates of Deposits (also called CDs) are a great risk free investment for those who are interested in investing their money over a few years time period. The time period usually ranges from anywhere between one quarter and five years, and once the CD has matured, you receive the principle plus the interest. The only downside to the CD is that sometimes they do not offer the same sort of tax breaks that other investments offer; however, they are definitely sound, sure, and risk free investments.
Obviously, not all investments are created alike and this is why many people seek the advice of a financial planner to help them with their investment needs. You might be interested in talking with a finance professional as well, so that you can be best advised on what to do when it comes to investing for the future. Whatever you do decide to do, be careful and cautious and make sure that you do not invest before you are sure - especially when it comes to riskier investments.
Unfortunately, to make a better return on your investment, there has to be an element of risk involved. Therefore, the more risky an investment, usually the better the possible return might be. However, it is important to be cautious in today's difficult industries, especially when it comes to real estate and the stock market. Where it once seemed easy to make a decent return, it now is a lot more risky and a lot less people are reaping the rewards.
Because of this, try to stick with investments that are risk free. Check out savings bonds, T-Bills, and CDs for your investments. You will be happy you did. - 23212
posted by X - Men @ 9:00 AM
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