Safe Investment Preserve Capital, But Provide Less Income and Little Growth
By Dana Anspach, About.com
What is Safe Investment?
The purpose of safe investment is first and foremost to preserve your principal. A secondary purpose is to provide some interest income.For example, when you deposit $10,000 in your savings account you know if you go down to the bank tomorrow they are not going to say:
“We’re sorry, but today your $10,000 is only worth $9,000.” Nor will they say, “We’re sorry, but we did not make any money last year. We can’t give you any interest until we have a more profitable year.”
Money in the bank is considered a safe investment because the primary purpose is not to make you more money, but to protect what you have.5 Investments That Are Considered Safe
The following investments are traditionally considered safe investments, as their primary goal is capital preservation.
- Series EE/E, and I Savings Bonds, Treasury Bills, Treasury Notes, Treasury Bonds and Treasury Inflation-Protected Securities called TIPS
- Bank Savings Accounts
- Certificates of Deposit
- Fixed Annuities
- Money Market Funds
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