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Do safe investments exist?<\/p>\n
The short answer is no because every investment involves some level of risk, which means it can lose value. But the relative risk of investments varies widely. Some investments are inherently more risky than others, like betting an individual stock on a certain day will go up or down — risky. Compare that to FDIC-insured (and NCUA-insured, the National Credit Union Administration) deposit accounts like money-market accounts, savings accounts and certificates of deposit. You would be insured against a loss of principal up to $250,000. Of course, in exchange for all that safety, you get lower returns, often less than 1%.<\/p>\n
Given that inflation will eat up that 1% over time, most people want to find the sweet spot between risk and reward. So how can you get your money to grow (hopefully more than the cost of inflation) without exposing yourself to a level of risk you are not comfortable with?<\/p>\n
Related >><\/strong> What is the level of inflation in the U.S.?<\/a><\/p>\n A friend recently told me she was about to receive an unexpected inheritance. Naturally, I asked if she was going to invest it. Her surprising response: “No, I don’t want to lose it all.”<\/p>\n She’s not the only one to react like that to the word “investing.” Many shy away from investing because they’re afraid of “losing it.”<\/p>\n Asked why they think they’ll “lose it,\u201d some say investing is too complicated or tricky. Others say Wall Street is a rigged casino; individuals don’t stand a chance.<\/p>\n Don’t misunderstand, caution is a good thing. Warren Buffett’s first rule of investing is: don’t lose it. His second rule? See rule No. 1. Avoiding undue risk, therefore, is good.<\/p>\n This may come as a surprise to some, but the stock market is not the only thing to invest in. In fact, stocks<\/a> are not even the most popular investments.<\/p>\n Here’s a list of some lower-risk investments:<\/p>\n Again, there are no truly risk-free investments with high returns, but if you are willing to exchange some risk for higher<\/em> returns, one answer is to invest in an index fund, a type of mutual fund. Index funds are a hands-off type of investment designed to track the market as a whole, such as the Standard & Poor’s 500 index.<\/p>\n You may also hear index funds called “passive” investments. You don’t need a financial adviser or a stock broker to manage your money once its in an index fund. Index funds are also low-fee.<\/p>\n Other avenues of investment (not<\/span> low-risk)<\/p>\n Related >> How to start investing in stocks<\/a><\/strong><\/p>\n So\u2026 what’s the most popular investment worldwide?<\/p>\n<\/span>Safe Investment Options<\/span><\/h2>\n
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<\/span>Safe Investments With High Returns<\/span><\/h2>\n
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