What are the risk types associated with your investments?
When it comes to making safe Investments, evaluating the risks associated with your investment types is an important factor. Based on what you’re investing in and to what extent you are prepared to risk your hard-earned dollars.
Low-Risk: You might have to tolerate a small amount of loss, and you might get higher returns, or you might find the break-even point! It’s reasonable to say potential profits balance the risk involved.
Looking for the Best Safe Investment Options? Consider 5 Low-Risk, High Return Investment.
You must understand that there can be nothing like a “Risk-Free” investment. All the investment options available out there have some risk involved with it; some have a higher risk factor while some have a lower. But if you’re looking out for some of the most exceptional Investment Ideas that have a low-risk factor associated with it, described below are the options you must genuinely consider:
1. Preferred Stock
When it comes to the list of best safe investments with low-risk involved, the “Preferred Stocks” are bound to make it! A “Preferred Stock” is primarily security that is traded in a fashion similar to a “Stock” but is more like a “Security Bond” in reality. It has a fixed rate of bonus associated with it, which is usually about 2% greater than what the “Certificate of Deposits” or the “Treasuries” are linked to. What makes them unique is they are traded within a few dollars up and down of the price they were issued. A few more characteristics that make them the “Low-Risk” investments with higher returns are:
- They pay out monthly or quarterly. The dividend it pays can also be qualified for capital gains.
- They have a minimal risk for “Liquidity.”
2. Money Market Accounts
The “Money Market Accounts” are FDIC insured accounts that generally offer a much higher interest rate than the archaic “Savings Accounts.” But unlike the traditional Savings Account, they require a much higher balance to be maintained at all the time. Money Market Accounts also allows the account holder to draw out money a couple of times every month. Since they require a relatively higher minimum balance to be maintained, if the balance drops lower than the minimum necessary, the banks would charge a fee for it. If not, the profit you earn on your deposits would be reduced!
3. Fully Secured Bonds
These type of bonds are another option to be considered when Safe Investments is what you’re looking for. They are itemized through the U.S. Securities and Exchange Commission. The income gathered through these bond sales is utilized in such a way that offers loans to small businesses across the U.S. These bonds have a maturity period of 36 months, but they can be cashed out whenever you want; without having to bear the penalties.
4. Certificate of Deposits (CDs)
If the best investment to save money is what you’re looking for, nothing beats the low-risk, high returns associated with the old-school “Certificate of Deposits.” Investing in terms of CDs, a failsafe “Interest Rate” is offered by the bank if you spend it for a specified time!
5. Annuities
Annuities have been known for bringing “Long-Term Stability” to your assortments and are the FINEST Investment Decision when considering higher-returns on a lower risk factor. Annuities offer a fixed rate for the returns made on your investments. Once the Annuities have completed their period of maturity, they are self-sufficient to last your entire life!