Let’s go over a few Low Risk Investments!

In today’s competitive economy, people can become infatuated with the idea of rapid, high-risk investments with massive payouts.  Everywhere you turn, people are raving about the stock of the week, how their cousin made thousands from a risky bet, or how they lost ten pounds with one weird trick. Well, it might be time to get off the bandwagon of risky investments, and take a look at longer, safer investments.

While low-risk investments aren’t typically good for a quick buck, over time, they can make you the richest man on your block.  Instead of endlessly chasing those risky high yield  investments let’s look at a least a mix of these low-risk opportunities.  It may be the path to a better life.

What Type of Investment should I Choose?

For the most part, not everyone will want or need the same type of investment.  While all low risk investments are considered long-term, they can range anywhere from a few years in duration until after your death.

Annuities

If you’ve already begun planning for retirement, an annuity might be a great option. While annuities can be fairly complex in the overwhelming options out ther, here’s the basic gist of it: you give an insurance company a lump sum of cash, and they give you a rate of guaranteed return for the rest of your life. These are carefully planned, however, and may not typically pay off until you are very old.  If your family does not have history of longevity, annuities are probably not a good option for you.  However, there are some annuities with options that allow your heirs to get part of your principal back.  There are also annuities that can survive you and go to your husband or wife for a specified time.

Life Insurance

If you truly care for your family, life insurance can be an essential form of investment. Getting a good life insurance policy will ensure that your family probably won’t struggle financially, should something happen to you. While you, personally, can’t benefit from life insurance, it should worth the investment to keep your family safe. However, be careful when buying life insurance, as some agents may try to take advantage of you.

Bonds

And, of course, there is the classic bond.  Specifically, municipal bonds are typically a good low risk investment strategy.  These types of bonds are not typically not taxed and, as you are buying from the government, the likelihood of the issuer defaulting is usually very low, especially if you live in a reputable country such as the United States.  Governments will typically have a range of tools to pay off bonds, such as taxes or even new bonds, meaning that they’ll typically always be able to pay them off.  Also, a tool very unique to the United States is the good ole printing press.  The government can print more money to pay their bonds back.  Municipal bonds can be a good investment for just about anybody, as they have varying rates and returns.

Are these Investments Guaranteed?

While these investments certainly are low risk, they aren’t guaranteed.  No investment is perfect or without risk and while the chances of it happening are very low, it is wise for you to always be prepared for them to fail.

Annuities and Life Insurance are guaranteed by those actual companies economic wealth stability.  If interested in these types of investments talk to your life insurance broker.  If you don’t have one check with someone you trust about who they use.

MSN Money Stock Quotes, Yahoo! Finance Stock Quotes, and CNBC Money can act as excellent sources for information on finding information regarding bonds and other low and high risk investments.

If done right, investing is a great way to have your money work for you.  Utilizing low risk investments for at least a portion of your portfolio can be a great way to make sure that it does.  Make no mistake, nothing in life is risk free.

To your everlasting Wealth!