Everyonewants that his life should be as easy as pie. Searching for safe investmentswith high return rate is the major goal of all investors but it is fruitless.Advertisements that tout investments with high return usually shows alert thatthese strategies with a high return also have a high risk that you may losemost, if not all, of your investment. On the other hand, low-risk investmentsmostly have low-profit rate as well.
Between the two extremes, best safe investments with high returns carry some reasonable risk in exchange for a high return. Here are some effective and safe investment options which you can choose according to your financial needs and goals.
Checking & savings Account:
Strategy for managing your money comprises ofa checking and savings account. A free saving account is a good place to startas no one wants to lose his hard-earned cash by paying fees An Online accountis a convenient option as you don’t need to visit a bank branch. Perhaps thebest way to invest money is to find such financial institution that pays offhigher interest rates on such accounts.
Considering the strategy for safeinvestments, a Certificates of the deposit is a saving account with higherinterest rates. For higher interest rates you simply have to agree not to cashout your CD for a specific and fixed period of time such as six months. Using adeposit broker instead of going to banks can give you even higher interestrates.
Inflation-Protected Securities by Treasury:
TIPSis an investment bond issued by the federal government that protects yourinvestment from inflation. This strategy guarantees that your investment willrise with inflation rate regardless of the interest rate. TIPS is one of thesafe investment because it is backed up by the federal government, although itoffers low-interest rates.
Using money market fund:
A money market fund provides you a pool ofsecurities, such as municipal bonds or corporate bonds, which you invest withassistance of fund manager. The rate of return is usually higher than a regularbank account, with a lower risk rate. You don’t need to figure out the domainwhere you want to invest as a fund manager does that for you. As there is anendless variety of money market fund offered through different banks and creditunions but your fund manager makes it sure to find the safest investment foryou.
US Savings Bonds:
USSaving Bonds are issued by the federal government. It is the safest investment.You can purchase these bonds from the Department of the Treasury. The best wayto invest money is to open a TreasuryDirect account online.
Real Estate Investment Trust:
Awise investment strategy comprises of investing in real estate. REITs aredesigned to give the opportunity to an individual to invest in large scaleinvestments such as shopping malls and apartments. REITs invest in theseproperties to operate them rather than developing or selling them. You canpurchase a share in such big projects of REITs to get high returns. Some realestate investment projects allow you to invest with other investors so you canget involved with a lower starting investment. REIT manager decides suitableplaces of investments for you.
Investorswho are willing to take risk can invest their money in peer to peer lendingprograms which give high return. LendingClub is one of the various companiesoffering tools and services required for setting up investment. You will haveto find some potential borrowers or pool your funds with other investors.
It’s a useful strategy for your investment but it all depends on one’s desire for death benefits, retirement security, or tax-differed growth. A financial planner or insurance expert can guide you about where to invest in such complex investments.
Credit card offers & rewards:
Safeinvestment with high returns also includes the useof such credit cards that provide cash back rewards. This strategy can help youto earn a reward by purchasing the products that you usually need with thatcredit card rather than cash or debit card. It’s a safe investment if you payoff your credit card bills monthly.
Paying-off credit card debt:
This approach may not fall within ambit of secure investment, however, if you pay-off credit card balances then it might be one. If any one is spending 2-digit figure of interest on credit card balance, then its better to spend money for paying-off balance then getting only 2 or 3 percent interest. Your card will then allow to enjoy cash reward benefits.