Investments – Low Risk Investments

The average person for whom investments are not a way of life or a major source of income often seeks low risk investments. Instead of playing the stock market game of day trading or investing in risky ventures, these investors just want a solid place for their money to grow a profit for their future use. Uses such as college education savings or retirement planning are common plans for investments. Low risk investments are popular for those who simply wish to further their money by gaining a good interest rate return over time. There are many investment options to choose from:

For those investors who wish to invest in the stock market, blue chip stocks are a often a good place to be. Blue chip stocks are stock invested in well known, nationally established companies with solid reputations. These are almost no risk because of their stability. There is almost always a good solid return on long term, in blue chip stocks.

Another investing option is the old standby CD. Certificates of deposit are investments placed into an account for a specific time period at an agreed upon interest rate. These CDs must stay in the account for the duration in order to reap the best benefit. Taking them out early is cause for steep penalties and can nearly defeat the original purpose.

Online savings accounts are another investment idea. This type of savings account earns a higher rate of interest than typical savings accounts. The money invested in online savings accounts stays liquid, meaning that it is accessible to the investor at anytime. Ensuring that the account is insured by the FDIC will prove it is a reputable account. Sometimes minimum deposits or account balances may apply.

Investments are a great way to further your money, to put the money to work earning more money. This is why many investments are for the purpose of children’s college education expenses or for retirement income when the time comes. Starting these investment accounts when children are very young and while you are working full time, years before they are needed, is a good way to steadily build up their worth until they are needed.

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