Tuesday, November 1, 2011

Low risk investing

With today's economy and the way the stock market is you may wonder where you can invest your money with little to no risk. These are a few options for you.

Savings bonds – usually offer a low return however very low risk

Certificates of Deposit – CD’s have set maturity dates, but are locked into a set interest rate at the time of investment.

Treasuries - T-bills are issued by the U.S. government. They are very low risk investments, being fully backed by the government. You can choose the maturity date for your investment. Short-term T-bills are the safest investments with maturity dates of 13 or 26 weeks.

Open money market / high interest savings accounts – Money market accounts yield ranges from .5 – 4.00. They are FDIC insured and a great way to quickly turn around your money. Only down fall is most require a minimum balance which can be high.

401k Plans – It is wise to invest in your company’s 401k plan if they offer one. Your funds are put in on a pretax basis.