When we view life, we can easily see it as a nice balance. When you add many options for investments that are low-risk, you have less chance of surprises involving the principle being lost. However, it will also be unlikely that a significant amount of earnings will be obtained as a result of the investment. Many like this kind of investment, which is why there are 6 low-risk investment options recommended by Traders Thailand.
1. Traditional Savings
Having a traditional savings account is the easiest way to obtain a low-risk investment. The main reason is due to the account not experiencing any changes. But you will still be able to acquire losses that are gradual over time. A good example is when you lose 2% interest for a 1% interest-paying account due to 3% inflation.
With traditional savings, you have the best option when it comes to accessing the money that you need whenever you need it.
2. Bank CDs
With bank CDs, they are a type of promissory note that provides a certain amount of interest over time that usually lasts for a certain amount of months or years. A downfall to a withdrawal is that a penalty could occur if a withdrawal is made prior to the maturity date of the CD.
A CD is similar to traditional savings as the risk involved is very low. A CD is also perfect for helping to put aside money for future expenses that may come up at any moment.
3. Treasury Securities
There are many securities available through the Treasury. Each one is low-risk and includes Notes, Bills, Bonds, I Bonds, EE Bonds, and TIPS.
In order to obtain these, the Treasury Dept. needs to be notified of the purchase and only through an account online. To make things simple, many investors opt to have their personal bank account connected in order to buy the security.
4. Tangible Assets
With tangible assets, these involve gold and are a very popular way to obtain instant cash in times of need. Although tangible assets have advantages and disadvantages, the main takeaway is the fact that they have a high amount of liquidity. When buying physical gold bars, they can be bought to obtain cash equivalent based on the per ounce price.
5. Stable Value Funds
An investment fund known as stable value funds is commonly found within retirement plans such as 401 (k) plans. The purpose of them is to maintain the principle amount, obtaining returns, and of course, remaining liquid.
6. Fixed Annuities
When an insurance company offers a fixed annuity they are considered low-risk due to the insurance company paying fixed interest based on a contract.
Comparatively, fixed annuities act similarly to a CD but with the tax being put off. If early withdrawal occurs prior to your 59th birthday, then you will obtain a tax penalty.
You need to keep in mind that the insurance company needs to be as good as the guaranteed interest. You will experience risk as soon as the insurance company folds o has a lot of financial struggles. As long as your amount is within a limit, then you won’t need to be concerned about losing money.
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