"Safest money investments"
JohnHanlin.com
What Are The Safest Investments Today?
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What Are The Safest
Money Investments Today?
Let's be clear about one fact: "There is no such thing as completely safe investing." There are, however, a number of very low risk investments available to investors - but again, none are entirely risk free.What Are The Safest
Money Investments Today?
This page is dedicated to answering questions that I am regularly seeing from people wanting to know where they can find: "the best low risk investments in today's economy".
These questions range from: "What are the safest money investments available?" to "What are the best high yielding low risk investments?" -- but they all involve the central themes of low risk and asset security.
And who can blame them? The global economy is on tilt, largely being driven by the United States, the world's financial core. Stock markets are experiencing significant devaluations, financial institutions are defaulting left and right, the foreclosure market is rampant and the price of oil has plummeted. Sound like Armageddon?
What's an investor to do? What is the the safest place to invest money today? Is it possible to find high yield safe investments anymore? Or, should I just keep my money in my mattress where it won't lose value? Oops! I forgot about inflation! Even in my mattress, I'm losing money!
For answers, please keep reading... .
Safe Investing
FAQ
FAQ
Here is a sampling of the questions that I am seeing nowadays, which I've boiled down to two central themes:
1. What are the safest money investments today?
~ Is there such a thing as safe investing anymore?
~ What are some good ways to invest money?
~ Where is the best place to invest money right now?
~ What are the best low risk investments?
~ What are some good investments?
~ What are some safe ways to invest money?
~ What are good safe investments?
~ Where do I find good money investments today?
2. Can I still find high-yield safe investments?
~ Is safe high yield investing still possible?
~ What are best investments for today's economy?
~ Are safe high yield investments a thing of the past?
~ What are secure high yield investments today?
~ Where is the best place to invest money right now?
~ What are the best fixed rate investments nowadays?
I'm guessing that you're probably asking some of these questions yourself. I know that I am! So, I've been doing a lot of research on these two central themes.
What's interesting is: depending upon the investment guru that you listen to, there are a lot of different opinions being given in response to the first central question: "What are the safest money investments today?" And the opinions vary even more in response to the second central question: "Can I still find high yield safe investments?"
So, based upon my research of numerous writings, internet searches, TV interviews, etc., tempered by personal knowledge and experience, below is a list of what I consider to be the safest money investments today. And, I've included my top pick for the best high yield safe investments at the end.
The Safest Money Investments Today
First of all, there is no perfect list of safest money investments that works for everyone. Factors such as age, income, portfolio size and diversification, IRA type (self directed vs. traditional), health, family situations, etc. all must be considered on an individual basis to do this properly. However, for the general population, below is my list of the Safest Money Investments plus the top High Yield Safe Investments available today (starting with the very safest money investments first)
#1. Cash:
We'll start the conversation about safe investing with the idea of putting your money in your mattress or burying it in a coffee can in your backyard (I know someone who still does this.) The risk here is three-fold: your money will lose value based on the inflation rate. (i.e. Assuming a 3% inflation rate, you'll lose 3 cents on every dollar each year.) Also, someone could steal the money from you or you could forget where you buried the coffee can!
I also include in the "Cash" category: FDIC-insured banking accounts including Checking and Savings Accounts, Money Market Deposit Accounts and Certificates of Deposit (CD's). These are considered by many to be the safest money investments you can make. However, you are limited to the amount insured by the FDIC (currently this has been raised to $250,000 per bank per individual through 2009.)
What risk is there associated with these? First, is inflation risk. The rate of interest you'll earn on your money will probably not keep up with the rate of inflation, though it's a little better than doing nothing with your money. Second: anyone every hear of the Great Depression? Well, that's what the FDIC was created to protect against, but you never know.
Now, Checking Accounts typically pay no or very low interest and assess a menu of fees which usually result in the average account not pacing with inflation. Savings Accounts usually average well below the inflation rate. Money Market Deposit Accounts pay a little more, but still below inflation and have limitations on the number of checks/withdrawals you can make (limited liquidity). And, even the best CD investments aren't much above current inflation rates, plus you'll need a very large amount of money to get the best rates and/or be willing to forgo access to that money for a number of years (no liquidity without penalty fees). Even then, the interest rate earned is not going to rock your world.
#2. U.S. Government Treasury Bills, Notes & Bonds:
Treasury Securities or 'Treasuries' are backed by the full faith and credit of the U.S. government. These are broadly considered around the world to be arguably the safest money investments available and are exempt from state and local taxes. However, I rank them below Cash because I feel they are both equal in terms of asset security (both are backed by U.S. government institutions), have generally less liquidity and typically pay less interest than Money Market Deposit Accounts or CD rates.
Treasury Bills mature in less than one year. Treasury Notes mature between 2-10 years. Treasury Bonds mature up to 30 years.
Downsides: Interest earned on Treasuries may not keep pace with inflation. You can usually get a better rate choosing among Money Market Deposit Accounts and the best CD investments (see #1 above). Also, liquidity is an issue depending on your choice of Treasury investment. And if you need your money before the security matures, you may not get back all of your original investment. Finally, it's important to understand that treasury security prices have an inverse relationship with interest rates. When one rises, the other one falls. So, if interest rates have gone up and you need to sell before the treasury maturity date, you'll get less than the entire principal amount back.
Note: There is a newer form of Treasury security now available that keeps up with inflation. It's called the "I-Bond" (Inflation Bond). Semiannually adjusts for inflation and sold in $50 to $10,000 denominations. You must hold for at least 1 year and pay a penalty of 3-months earnings if redeemed before 5 years.
#3. Municipal Bonds:
Municipal Bonds or 'Munis' are issued by state and local governments to pay for new highways, build schools and other projects for the good of the public. They are backed by the full faith and credit of the state or local government and considered just a step down from U.S. Treasuries in terms of being among the safest money investments available. These securities are exempt from federal taxation and in some cases, from state and local taxes as well, if you live in the municipality issuing the bond.
Downsides: Interest earned is usually quite low and you may have to pay a commission to buy them. Also, like a Treasury, if you redeem before the maturity date, you may not get all of your money back (not liquid).
# 4. U.S. Treasury Money Market Funds:
These are Mutual Funds managed by financial institutions such as Fidelity Investments that pool investor funds to invest strictly in short-term U.S. Government Treasuries (see #2 above). These securities can be traded, so are more liquid than Treasuries purchased directly from the U.S. Government. However, the share price and yield of the fund can fluctuate with interest rates and the timing of the securities bought and sold inside the fund. This means, there is some uncertainty about how much of your original investment you'll get back when you cash out, plus you'll have to pay an on-going expense to own the fund (called the "expense ratio) and you may have to pay a commission to buy and sell the fund securities (called a "load"). Also, there's always the risk associated with the fund manager's financial stability to consider these days. (Case in point: Merrill Lynch.)
NOTE: Unlike Money Market Deposit Accounts, this form of Money Market fund is not FDIC insured. (Very important!)
#5 Aaa Corporate Bond Funds:
These are Mutual Funds managed by financial institutions that pool investor money to invest strictly in Aaa Rated Corporate Bonds (highest Moody's rating for financial stability). This security type is one of the safest money investments because it diversifies by investing in a combination of different Aaa rated corporations' bonds. Therefore, these are considered to have lower risk versus buying a singular Aaa Corporate Bond.
Downsides: Like U.S. Treasury Money Market Funds, these funds are susceptible to the mutual fund's share price and yield fluctuations based on interest rates for the different securities traded inside the fund. Also, you'll have to pay the "expense ratio" and "load" costs similar to U.S. Treasury Money Market Funds (#4 above).
Best High Yield Safe Investments:
A
lot of people today have been stung by the current financial
conditions, whether in stocks or otherwise. And, as a result, many are
running for cover and seeking the safest money investments they can find to shelter their assets until the economy turns around.
We're seeing many investors now moving their money into investments like cash and "treasuries" that aren't going to keep pace with inflation. And although they aren't happy about losing money with any investment, they are settling for losing a little versus losing a lot somewhere else (e.g. the stock market).
I too have taken a more conservative approach with my investment portfolio, but I want you to understand that you can still find high yield safe investments right now if you know where to look! That's the key: most people don't know where to look, so they're settling for break-even or money-losing investments, when they don't have to.
"You can still find high yielding investments with asset-backed security without having to settle for break-even or money-losing investments!"
Below, is important information about one of the most secure, high yield investments you can make. It has been a cornerstone investment for many of the world's wealthiest investors for generations because it can deliver both asset-backed security and superior yields. Best of all, it is expected to flourish for the next 25 years and I'm going to tell you exactly why, how and where this is happening!
We're seeing many investors now moving their money into investments like cash and "treasuries" that aren't going to keep pace with inflation. And although they aren't happy about losing money with any investment, they are settling for losing a little versus losing a lot somewhere else (e.g. the stock market).
I too have taken a more conservative approach with my investment portfolio, but I want you to understand that you can still find high yield safe investments right now if you know where to look! That's the key: most people don't know where to look, so they're settling for break-even or money-losing investments, when they don't have to.
"You can still find high yielding investments with asset-backed security without having to settle for break-even or money-losing investments!"
Below, is important information about one of the most secure, high yield investments you can make. It has been a cornerstone investment for many of the world's wealthiest investors for generations because it can deliver both asset-backed security and superior yields. Best of all, it is expected to flourish for the next 25 years and I'm going to tell you exactly why, how and where this is happening!
Professionally Managed
Raw Land Developments
Raw Land Developments
These days, many people run away when they hear anything related to "real estate". Before you run, you owe it to yourself to learn a little about Raw Land Development Investments or you will miss out on an extraordinary investment opportunity and never know it.
Raw Land Development is a form of real estate investing that few investors understand or even know about. It bears virtually no resemblance to Residential Real Estate - which we know are both experiencing big problems these days.
Also, please be clear that I am not talking about "Raw Land Investing" (also called "Land Banking"). That is where you would buy undeveloped property, sit on it for a period of time, pray for appreciation and then hopefully, sell it for a profit.
No, what I'm talking about is: "Raw Land Development" and it is far different. (Click here to see the Raw Land Development Process step-by-step.)
Please don't make the mistake of thinking that all forms of real estate are the same or that they're all experiencing the same circumstances as residential real estate is right now -- because they're not -- as you'll learn below:
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Below are the reasons why raw land developments are cornerstone investments for many of the world's wealthiest investors and why every accredited investor needs to consider including raw land development investments in their retirement portfolios:
1) On average, a professionally managed raw land development project will increase the value of raw, undeveloped land by 3-5 times what was originally paid for the property. In other words: an average 300-500% Gross Return On Investment for the raw land developer. (Before associated costs.)
2) Raw Land Development Projects are typically secured by the value of the land that is being developed (asset-backed investor security). Also, investors are usually placed in 1st position for project assets and revenue for additional investor security. This means, in the event of an unforeseen catastrophe (heaven forbid), the land can be sold, allowing investors to recoup all or part of their investments in the project. Now compare that with stocks, bonds and most other investments where there is virtually no security on invested funds.
3) Raw land is virtually recession-proof because it really doesn't appreciate or depreciate much in it's undeveloped form, regardless of the economy (until the development process is completed.)
Extraordinary Opportunity:
A) Professional
raw land developers will often seek private parties as "silent" investors in their raw land development projects.Definition: what is a silent real estate investor? This can be an individual, a partnership, a business, a trust, a pension fund, or other organization that invests money into a real estate project (could be in a raw land development or some other form of real estate investment). The key is that the investor is truly "silent". This means that they are not involved in the management or day-to-day decision-making of the project or business. They simply are investing to share in the profits generated by the real estate investment. (And, in some cases, they might also be paid interest for the use of their money until they cash out of the investment.)
In return for the use of silent investors' money, some professional developers will pay both high yield interest on invested funds and a share of the net profits!
B) Today, we are being presented with a lifetime opportunity for raw land development expansion in 10 Major U.S. Markets. It's the "perfect investment storm" for informed investors: when all the elements come together for an extraordinary event."
** To learn why, how and where this expansion
is happening right now, click on the image below **
Click here:
Press Release:
For More Information Visit These Links:
4 Reasons Why Raw Land Development Is A Good Investment
What Is The Best Investment For My Money?
The Raw Land Development Process Step-By-Step
How To Earn Double-Digit Returns
To learn how & where I personally invest in
Raw Land Developments, fill out this form:
Contact Information
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What Are The Safest Money Investments Today?
What Are The Safest Money Investments Today?
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