How can I make safe investments?

Many investors, especially those who are planning to retire in the near future and cannot afford to risk their money, try to look for safe investments. There is no perfectly safe investment, because even a pile of gold under the mattress can lose value if the commodity value of gold drops and even the insured savings account can see its real value in the face of hyperinflation. However, a balanced portfolio can combine investments that protect initial capital, often through guarantees that protect against inflation.

Safe investment trying to maintain initial value will generally focus on assets with protection against the risk of institutional collapse or failure. Ordinary savings accounts and deposit certificates are among the simplest and safest investments in this category. Federal deposit insurance, or FDIC, collects fees from banks and in return guarantees most of the forms of a regular bank account and CD, up to a certain, justLivoský, ceiling. Individual banks may fail, but deposits in these banks are protected.

There are other options for safe investment that protects initial capital. The Laws on the Treasury of the United States are generally considered safe investments and offer additional refuge for cautious capital. A slightly better return rate, along with greater flexibility, can be obtained by placing money on the money market account. These accounts are managed in such a way as to generate modest but very safe yields and generally lose value only in extraordinary circumstances. Even during the financial crisis in 2008, the money market funds usually lost penny or two to the dollar.

However, the loss of principle is not the only risk of investing. Inflation can delete the value of assets as the default in the problem of the corporate bond. Bank accounts and bonds are bad security against inflation like mIra interest, which pays, normally does not keep a step with a decrease in the value of the currency during the period of severe inflation. The best safe investments to secure inflation are those that are tied to specific assets, as these assets will tend to maintain the pace with inflation.

Investments in commodities such as precious metals may fit into this category of safe investment. Some stocks can also be used to fulfill this role. In general, investment in corporations with proven aiming to slow and stable growth and stability, especially if they are held through a mutual fund to add another layer of diversification, can secure against inflation. The conservative portfolio should contain a combination of different assets that will differ depending on whether inflation seems to be likely to be in an almost medium term.