Smart investing can lead to big bucks, even if you're not making splashy moves.
Investing your hard-earned dollars might feel like a huge risk if you're not an experienced investor. That's why it's always better to do your research, but not everyone has time to study smart investing these days. Fortunately for you, we can help.
Today, we're going to tell you 4 safe investments that you can count on to put money in the bank and keep it there. For an investing novice, it's always better to start out with surefire wins like these, then you can move on to riskier investments as you gain confidence.
1. Treasury Securities
Treasury Securities are issued by the US government and are generally all considered low-risk investments. You can buy any of EE Bonds, I Bonds, Treasury Bonds, TIPS, Treasury Bills, and Treasury Notes online through the treasury website. Since there isn't any credit risk on treasury securities, the interest is lower than a typical bond.
2. Corporate Bonds
For slightly more risk, corporate bonds will yield you more than treasury securities. These kinds of bonds are issued by highly successful companies, which is why they're considered generally quite safe.
You can still lose money if interest rates go up or if the issuer happens to go broke. Because they've got fixed interest rates, you won't earn a higher rate, so if you need to sell at some point, you may need to sell them for less than you paid for them. It's important to do research on a company to ensure that they're stable before making an investment.
3. Preferred Stocks
Preferred stocks are a sort of hybrid between stocks and bonds. They have the dependability of bonds while giving you the potential appreciation that you get from stocks. They're not 100% dependable like normal company bonds, but they're dependable enough and they pay out more because of the slight risk.
For 120 years, preferred stocks have averaged annual returns of 7%. It doesn't get much safer than that when investing.
4. Common Stock Options
Common stocks that pay dividends are another good, safe option. REIT's and utility stocks, for example, are both considered very reliable for dividend payments. As with corporate bonds, it's important to invest in long-established companies that pay reliable and consistent dividends if you want your common stocks to work out.
Like all common stocks, you're subject to some risk, but as long as you stay away from growth stocks that stand on shaky ground, your money should be safe. Using a good broker that understands your intentions will help. Check out this etoro review to learn more about their pros and cons.
Making Safe Investments Makes You Money
Making any of these safe investments won't get you rich quick, but they're great ways to steadily increase your wealth over a period of time. These are a few popular safe investment examples, but there are more out there. You can also find more options to earn as you increase your risk, but save that for when you feel more comfortable investing your money.
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