The economy is changing day by day and everyone is looking for a way to get a secure way through which their financial future can be guaranteed. Many people have tried the Wall Street way and have come out with broken hearts. The stock market is no longer for the risk discerning individuals. Many people will want to have a reasonable return on their investment and still keep the risk involved under the cap. Getting a low risk investment today that gives back worthwhile return can be a true challenge but by trying the following ideas an investor will certainly not be disappointed.
Bonds:
Bonds can be issued by a government or a company. Bonds that are issued by the government are the most secure low risk investment opportunities that people first opt for before going for any other type of investment. Usually the government gives bonds at a certain rate of interest and payable at a future date. A person will get a certificate and will receive their investment plus the interest rate as agreed. Bonds from corporate work in a pretty similar fashion and they usually issue them if they want to expand or re-invest in some project. They are not as secure as the government’s although the chance of losing your money even if the company went under is close to zero.
Annuities:
These are investments that a lot of people consider as a perfect way to save for their retirement but still it is used as a form of low risk investment by many. A person may choose to give a certain amount of money to an assurance company for a given number of years and then at a later date decide to receive their money either as a lump sum or as a monthly annuity. It is a perfect way to insure one’s sunset years. The benefit is that your money earns interest and the tax payable is deferred until when the annuity is receivable thus your savings earn more interest.
Stocks:
Investing in a stable company can be the way out for you. A person should however do some research and look out for companies that are very stable and have a track record that is impeccable. Looking out for the blue chips is the best bet of finding low risk investment. This will apply best if the investor wants the stock for the long term.
In looking out for the best low risk investment opportunity, a person should always know that putting all eggs in one basket is – as the saying goes not clever. A person should look out for a way to spread their portfolio such that even if one investment went wrong, the rest will still be intact.
