For many, investing can feel like gambling, especially when you don’t know where or how to invest. The last thing you want is to lose the money you worked so hard to save and invest. And that makes sense. For this reason, we’ve put together a short list of the best safe investments with high returns that you can start with today.
- Money Market Funds
You invest in money market funds with the help of a fund manager. This investment strategy invests in a pool of securities, such as corporate or municipal bonds. Your return will be higher than a standard bank account, however, the risk is low since your investments are pooled with others. A benefit of going this route is that the fund manager takes care of where and when to invest your money so you can sit back and relax.
Although you receive a high return on annuities, the investment process is complex and requires a financial planner. Investing in annuities is a good idea, however, if you are growing your retirement or death benefits.
- Certificates of Deposit
Otherwise known as a CD, this is a savings account with a higher interest rate. The only other difference between a CD and a standard savings account is that you agree not to cash out the CD for a specific amount of time – typically 6 months, one year, or longer. If you use a deposit broker rather than go directly to the bank, you can sometimes get a higher interest rate.
- Treasury Inflation-Protected Securities (TIPS)
Another safe investment with a high return is TIPS. This is a government-issued bond that protects your investment from inflation. The rate itself isn’t high but there are zero risks because the government guarantees that as inflation rises so will your investment.
- US Savings Bonds
These bonds are also government-issued and an extremely safe place to invest your money. Depending on which bonds you purchase, you may even get some inflation insurance. You need to purchase these bonds directly from the Department of Treasury and this can be done online.