LOWEST RISK INVESTMENTS! 📈 Top 5 Low Risk Investment Strategies

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• published: 09 Jun 2017
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What are the lowest risk investments you can make? I recently did a video about high risk investments. In contrast, today I will be going over 5 of the lowest risk ways that you can invest your money. These are investment strategies that are guaranteed to put you to sleep. You will check your investments down the road and go, am I even investing? The answer is yes, barely. Low risk investments like this have an incredibly low rate of return. Nonetheless, it is interesting to look at these investment strategies! 1. Certificate Of Deposit This is the safest investment that exists. It is also the most boring, and some would barely call this investing. You can get a CD or certificate of deposit through your bank or your broker. With a CD, you deposit your money for a specified length of time in exchange for a guaranteed rate of return. This rate of return is a fixed interest rate and it does not change. Interest rates on CD’s are incredibly low. There is virtually no risk of losing any money. 2. Treasury Inflation Protected Securities These TIPS are bonds that have two methods of growth. The first is a fixed interest rate that does not change for the length of the bond. The second is a guaranteed inflation protection where the rate of interest rises with inflation. For example, a TIPS may have a fixed interest rate of 0.35%, but if inflation is 2% the return is 2.35% total. The only way you can lose money on this type of investment is if we see deflation instead of inflation and it exceeds the fixed interest rate. TIPS can be purchased individually or through a mutual fund that exposes you to multiple bonds. 3. Peer To Peer Lending This is where you invest your money by lending it to someone else. They, hopefully, pay you back the principal as well as interest. If you screen your loans and choose the best rated borrowers this can be a very low risk investment. If you do not screen your borrowers this can be a risky investment. Lending Club is a site that facilitates peer to peer lending, and they have a 5% default rate. Some sites allow micro loans as small as $25. Returns of 4% to 7% are typical. 4. Money Market Funds This is a type of mutual fund characterized as having low risk and a low return. This fund includes a portfolio of short term high quality investments. The idea behind a money market is not to lose any principal. The fund pays a little interest while parking your cash. The goal of a money market fund is to keep the net asset value at $1 a share. These funds are meant to be a place to park your cash, they are not meant to be a long term investment. 5. Municipal and US Savings Bonds When a government at the state or local level needs to borrow money, they issue a municipal bond. Municipal bonds are exempt from federal income tax and many states exempt them from taxes as well. These are a smart investment for those looking to minimize their exposure to taxes. They are a very low risk investment, as the likelihood of the borrower defaulting is extremely low. US savings bonds are backed by the federal government, and interest rates on these bonds are very low. However, if you buy a Series EE bond your investment is guaranteed to double in value held to maturity which is 20 years. This is an average return of 3.5% per year. Related Articles: Best Low Risk Investments https://www.goodfinancialcents.com/low-risk-investments-options-high-yield/ #1 BOOK I RECOMMEND (Wealth): http://amzn.to/2sncXrg #2 BOOK I RECOMMEND (Mindset): http://amzn.to/2smXaIW #3 BOOK I RECOMMEND (Happiness): http://amzn.to/2smO0Mv #4 BOOK I RECOMMEND (Investing): http://amzn.to/2rsXWny Website! http://www.ryanoscribner.com Follow me on Twitter! https://twitter.com/RyanOScribner Facebook! https://www.facebook.com/ryanoscribner/ Snapchat! ryanoscribner My Equipment... CAMERA: http://amzn.to/2smXFCO TRIPOD: http://amzn.to/2qOSKZ5 SD CARD: http://amzn.to/2rttI3K LIGHTING: http://amzn.to/2qON0Pl ACOUSTIC PANELS: http://amzn.to/2s2ywjr My Board... WHITEBOARD: http://amzn.to/2qOVRR1 MARKERS: http://amzn.to/2qPetjA ERASER: http://amzn.to/2rkduLU CLEANER: http://amzn.to/2qOXPAT STOOL: http://amzn.to/2rA2omJ If this video brought value to you, please leave a like! If you are looking to find out more about anything I discussed, drop me a comment or contact me on Twitter. Subscribe to be updated on my journey through life! DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.