Safe Investments Site

Many people spend their time working hard to earn money for the security and well being of their family, not only for the present day, but also for the future.  If this sounds like you, then you will probably been keen to invest some money and hope that you see a good return.  There any many options when it comes to investments.  Some are risky and some are safe.  What you need to know is which are the best safe investments.

It would be comforting to know that any money that we put into an account, or use to buy stocks with, is going to be safe.  Unfortunately it is not always easy to know which are the best safe investments and which are high risk.  As a general rule, you will probably find that if the percentage return on your money is fixed at a fairly low rate, the investment will be secure.  If, however, you buy high risk stocks and shares, the return will be potentially a lot higher…. or possibly you may end up with nothing!

The Federal Government has an investment scheme which is very secure.  If you are keen to know more about just which are the best safe investments, you should have a look at the Government Treasuries.  There are three types of treasuries, all of which are similar aside from the length of the term.  Treasury Bills have a term length of one year or less,  Notes are offered from one to ten years and Bonds for ten years and longer.  The Government will use the money that you pay for these treasuries for investment and, in return, will guarantee you a fixed rate of interest.  This interest rate is not high as you have the backing and ‘full faith and credit’ of the United States Government.

Government Agency Bonds are a little more risky but offer a higher interest rate.  They do not carry the same ‘full faith and credit’ backing of the Government, but are still some of the best safe investments available.  One of the downfalls that you may be concerned about with GABs is the possibility of the loan associated with your investment being prepaid.  If this loan should be paid early and this falls during the allowable call period of your investment, you may find the life of your bond is decreased and no further interest paid upon it.  Both treasuries and bond are exempt from state and local taxes.  There other safe investments that come with the backing of the Government, but the above two are probably the two most common.

Any schemes that carry the guarantee of the Federal Government are going to be the best safe investments. Although you may find that you are not getting a very high interest rate with this type of investment plan, as least you will know that you will have a safe and secured return on your hard earned money.

The cost of oil has reached all time highs. It has been soaring upward from the last six years as the demand of oils is more than its supply. So if you have the desire to invest in oil, the simplest and easiest way would be to invest in shares of oil companies. These assets can be bought like stocks which includes a tiny charge.

Oil is in demand in developed as well as developing countries to support the rate of growth and meet the day to day needs. The overall growth in the world population had increased the demand for oil. Investing in oil is a golden opportunity. However, most people may not know how to benefit from the price hike.

Investing in oil stocks is almost always a good bet; this depends on the amount of risk that one is willing to take.  Investors can buy into bigger oil companies as they are safe and diversified. One could also take risks by investing in smaller oil stocks that specialize in exploring and operating in risky locales. Your tolerance for risk will determine which investment is right for you.

There are also a few exchange trading funds that are related to oil, and numerous mutual funds too. The ownership cost is lower in exchange trading funds, and one can easily buy and sell them at anytime during the day.

Trading in oil is an extremely risky job. It is not possible to gain 700% return without taking risks. Do your homework well before investing. There are numerous legitimate fund managers who have created sound oil investments and enabled their investors to make money for many years.

In general investing in oil is a safe investment, thanks to the rising demand.  If the amount you are investing is small, then you’ll see better returns from small oil companies, but remember they operate in risky environment. If you’re investing a large sum, then blue chip large companies will pay off in the long run.

Some of the oil companies are willing to form partnerships with good potential investors. As always, proper research must be done before investing money into any company.

Oil is one of the resources in this planet which is in high demand, but since it is a non-renewable resource the oil price is constantly moving upwards. Investing in oil will definitely give great returns.

People nowadays are very keen on looking for good forms of investment. This is because investing has become a lucrative way to earn some income with your hard-earned money. One of the best forms of investment that people can now go into is collecting numismatic rare coins. This is because the numismatic value of these coins is predicted to increase over the years.

In the US, coin collecting, especially of numismatic rare coins, has presented a great opportunity for a number of people to get richer in a shorter span of time. Because of the outstanding value of these coins, they have found a feasible way to double if not triple their invested money. They have found the present times as an especially good time to start their rare coin collection because of the prices have been registered to be at a low for some five years now. The availability of these rare coins is also at high, making them easily available to those who want to purchase them.

Numismatic rare coins are old coins made of either gold or silver which are now getting to be quite in demand among investors. This is because they are very good in balancing stock portfolios, which results in the reduction of risks in the investment market as well as in the generation of a considerable profit. The recommendation of financial analysts to investors nowadays is to place their discretionary funds of at least 10 to 20 percent into rare coins and other precious metals, even if they already own stocks in gold mining.

At a closer look, numismatic rare coins are really very good in being assets to the financial situation of investors. Based on the market analysis on rare coins made of silver and gold done recently by Coin Universe, it is noted that a $1,000 investment on rare coins made during the 70’s would already bring in almost $58,000 to its investor nowadays. Unlike paper assets like treasury bills, bonds and stocks that lose value over time, rare coins always escalate in value, whether they are made of gold, silver or platinum. As such, if your investment portfolio includes rare coins, then its volatility will definitely be lessened. Furthermore, your investment will also be protected from the usual uncertainties that pertain to the economy like inflation.

There are things that needed to be remembered by investors though. They should see to it that they get numismatic rare coins that have been graded and certified by the two top grading firms operating independently, the Numismatic Guaranty Corporation and the Professional Coin Grading Service, especially if they can only be traded. These coins should also come with a complete guarantee that the money used in purchasing them would be returned if discrepancies were found in them. As such, some investors now use firms that are specializing in looking for and finding the right rare coin that will meet the budget as well the needs of the buyer.

If you’ve been researching the basics of investing, you`ve most likely read a little bit about the varying degrees of risk in different investments. I’d like to look more closely at risk and find out what it means how we can deal with it. Risk is the possibility of loss to your investment. If there is no guarantee that you will receive your maximum possible return, then there is risk of some kind. All investments involve risk.

The most basic kind of risk involves a loss of principal (the original amount of money that you invested). If you buy a stock or mutual fund or invest in real estate, there is no guarantee that you will get all of your principal back. You can greatly reduce or eliminate the risk to your principal by keeping your money in a bank savings account, purchasing a fixed term deposit (agreeing to deposit your money for a specified amount of time), or buying investment grade bonds. But even when you guarantee your principal, there are still other kinds of risk.

Another kind of risk is inflation risk, the risk that your money will hold less value in the future than it does now. Keeping your money in a bank savings account, and to a lesser extent a fixed term deposit, exposes you to inflation risk because your returns will probably be lower than the rate of inflation. This is why banks are terrible places to leave large amounts of money for more than a short time.

Another kind of risk is opportunity risk. This occurs when you lock up your money in an illiquid investment, like a fixed term deposit with very modest returns, and miss an opportunity to invest in something with a chance of much higher returns. When I first began learning to invest, I was in a hurry to get started and put around $5000 into a fixed term deposit. I didn’t know much about investing, so I plopped my savings into a guaranteed investment. About 1 day later, there was a drastic drop in the stock markets, which would have been a golden opportunity for me to buy stocks while prices were low. But I couldn’t buy stocks, because I had committed that $5000 to a 1 year fixed term deposit with no option of early redemption. I could have made some real gains on the stock market, but I was stuck with a modest 5 percent interest rate. I had avoided risk to my principal, but I was bitten by opportunity risk. You can avoid opportunity risk by keep your money in liquid investments like stocks and mutual funds with no minimum time commitments.

Opportunity risk is similar to marketability risk, which is the chance that there will be no buyer available when you wish to sell your investment. This is important especially with real estate. Selling property can take a long time. You need to hire a realtor, advertise, have open houses, etc. If you need that money immediately, you will likely be out of luck. Your money is tied up for the time being. Real estate is not a good investment to make if you may need to liquidate it anytime soon, or at short notice.

Another kind of risk, and one of the most major, is concentration risk. This occurs when you have too much of your money concentrated in one area, for example all in one particular stock or all in one industry. Have you heard of Enron? Well, anybody who had their investments concentrated in Enron ended up getting the shaft. When the dot com bubble burst several years back, a lot of people who had their money concentrated in new internet businesses lost everything. The lesson to learn here is to diversify your investments. Diversification, as we’ve mentioned before, means holding a variety of different investments across a variety of sectors so that if one of your investments flops, you are losing only a small portion of your money rather than a large portion of it or, God forbid, all of it. It’s of central importance to build a diversified portfolio to reduce your concentration risk.

Another kind of risk is interest rate risk, which is the possibility that the relative value of your investment will decrease due to changes in interest rates. This is mainly relevant for fixed income investments like bonds. If you buy a bond with a fixed 5% interest rate, but then market interest rates increase, you may be stuck with that bond at a 5% interest rate even though bonds with higher interest rates are now being issued. The dollar value of your investment upon maturity doesn`t change, but the relative value has changed, since there are now other people out there earning more interest than you. This will decrease demand for your bond, so if you decide to sell it it will fetch you a lower price than the newer bonds with higher interest rates. Interest rates have a profound effect on various aspects of investment, but this is the most basic kind of interest rate risk to understand for now.

Another kind of risk is currency exchange risk. Currency exchange rates are constantly fluctuating and can change the value of your investments. If the base currency of your investment is different than the currency you are purchasing with, then the value of your investment will fluctuate depending on the currency exchange rates. For example, if you buy a China growth mutual fund whose base currency is the Chinese Yuan, and you buy it in US dollars, then any increase in the Yuan will work in your favor when you sell the investment, and any decrease in the Yuan will work against you when you sell the investment. This risk can not be eliminated and it is best to have a balance of hard currencies. Hard currencies are basically trusted currencies of stable countries with consistent fiscal policies.

Those are some of the major types of risk you need to be aware of. Once you understand these kinds of risks, you can determine your own risk profile and decide how much risk you are prepared to take on.

Paul Jorgensen gained financial independence after years of turmoil by taking control of his finances and learning to invest strategically

For more tips visit http://www.learning-to-invest.net

Article Source: http://EzineArticles.com/?expert=Paul_Jorgensen

Mutual Fund Investments are safe always. You may know that all the profits shared to the investors by the mutual funds are coming out of the profits from the investments in the stock market.

Normally mutual fund schemes are entrusted to the designated person who is called fund manager.

It is his look out where to invest and when to invest and when to come out. They are professionally qualified to carry out these activities sincerely.

Normally every mutual fund will have a risk management team also. This risk management team’s responsibility is to safeguard the interest of the investors when the stock market is behaving differently beyond the expectation.

It is the general comment of any mutual fund companies that while the investors are sleeping they proudly say that their fund managers are working briskly to safeguard the investments of their investors.

While investing through mutual funds, investors need not worry about the market fluctuations or volatility. Their fund managers are very intelligent and they very well know about the market’s behavior at all times.

They won’t be trapped by any rumors about the market condition. They won’t chase after the artificial boost of a particular company’s share.

If that is the situation they will immediately analyze whether the boost is real or artificial. If the boost of a particular company’s share is real then only they will take positive decision.

Moreover every mutual fund will want more investments from their existing or new investors only if they manage the fund effectively and give good returns to their investors sincerely.

So they naturally work sincerely for high returns to the investors.

Ideal period for every investor to remain in the mutual funds is from 1 to three years. Then only they can get good returns for their investments.

Investors need not worry about the volatility in the stock market if the period of investment is from one to three years.

Mutual fund investments are diversified in various good performing companies.

In other words every investor in the Mutual fund is having his investment portfolio spread over to many good performing companies, whether the amount invested by him/her is minimum or maximum.

Mutual fund investments are like a lifeboat in the ship.

C.Krishnan, is an experienced financial advisor to mutual Funds investments.

He is also running an emagazine “You can succeed” at http://www.tncity.biz/article.html.

Articles are published daily ranging from diabetes, weight loss, arthritis, beauty, fashion, diet,food etc.,

Article Source: http://EzineArticles.com/?expert=Krishnan_Chinnasamy

If you are looking for a safe investment and you have between $100 -$1,000 to invest, you should consider a certificate of deposit or CD. When purchased through a bank, CD’s are federally insured up to $100,000.

When you invest in a certificate of deposit, you are lending your money to the bank for a set period of time at a fixed rate of interest. At the end of that time period, the bank pays you back your investment with the interest you’ve earned. The annual interest earned is reflected by the annual percentage yield or APY.

There are several details to consider before investing in a CD. First, find out when the CD will mature? Banks offer certificates of deposit with maturities ranging from 3-months to 10-years or more. Figure out how much to safely invest and how long you feel you can leave that money alone so that it earns interest. Also, make sure you get the maturity date in writing.

Second, you’ll want to know the annual percentage rate (APR) you’ll earn on your investment. Investing larger sums for longer terms usually earns the best interest. However, even a small investment can earn you higher interest than a traditional passbook savings account.

Next, find out how the interest is compounded - daily, monthly, or annually? Daily compounding is best because it earns you more interest. You can shop for the best CD rates at www.bankrate.com or check with your personal banker.

Shopping on the internet, I found rates for a $1,000 1-year CD in my local area ranging from 2.96 to 3.97 APR and a 3.00 to 4.05 APY respectively. So if I invested $1,000 at 2.96 APR, at the end of 12 months I’d get paid $1,030.00 by the bank (figures computed with interest compounded monthly). That same $1,000 invested at a rate of 3.97 APR would return $1040.43.

Interest rates are usually locked in for the term of the CD, although some banks allow you to take advantage of higher interest rates by converting your CD. This type of CD is called a “step up” CD. Generally, banks will only let you “step up” once during the term of the CD.

What happens if you withdraw your money before the certificate of deposit matures? Your bank will impose an early withdrawal penalty, which can vary depending upon the maturity date and the amount invested. It’s important to invest only money you can truly afford to leave alone for the term of the CD.

As with any investment, make sure you understand all the terms, fees, and any penalties before you purchase.

Copyright 2005, http://www.yourfreecreditreportnow.com
Author: James H. Dimmitt

James is editor of “TO YOUR CREDIT”, a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book “IDENTITY THEFT- How To Avoid Becoming the Next Victim!” and other money-saving bonuses by visiting http://www.yourfreecreditreportnow.com

Article Source: http://EzineArticles.com/?expert=James_H._Dimmitt

You want your money to grow and work for you, but risk makes you uncomfortable. Is there a way to do it safely? You bet there is.

There is a rule of investing that is ancient and unchanging. It has guided the investment strategies of people since the very beginning of commerce and the advent of money. This rule states that the bigger the risk, the more the return. You can invest in safe and secure investments, but you will not make big profits or grow rich. You also will not be likely to lose your investment and go broke either. When you understand this principle, the answer to the question becomes dependent on the rate of return you are expecting. It would be better to go ahead and phrase it this way: What is the safest way to invest money to realize the return on my investment that I desire?

A regular passbook savings account at your local bank could be considered a form of investment. Many people see saving and investing as two totally different things, but when you understand the risk versus return principle; you can view savings as a very low risk investment. There are ways to increase your return even when investing in savings at the bank. Certificates of Deposit and Money Market accounts pay a higher rate of return than passbook accounts.

Bonds such as United States Saving Bonds are another low risk, low return investment. There are many types of bonds issued by local governments and corporate entities. The bond is basically a promise to repay at certain amount of money and interest over a certain time span. They are similar to Certificates of Deposit in many ways. Once again, the drawback is a lower rate of return on your investment.

Mutual Funds are one of the safer ways to seek a little more return with a minimum of risk. A mutual fund basically gathers investments from a large number of individual investors and puts the total amount under the control of a fund manager. The fund manager invests in various stocks and other investments to try to make a profit. The profit is then split among all the investors. The fund manager is guided by certain restrictions in his investment options depending on the type of fund, but by spreading the investment out over a large number of various stocks, he reduces the chances of taking a major loss. One disadvantage is that a certain amount of the profit must go to pay the administrative costs of running the fund. This reduces the profit, but still, overall, the mutual fund represents a safe investment that can give a higher return than simple savings.

It does not really matter what type of investment you chose. There are still some ways to make the investment safer. The most important is to study the investment carefully. When you are armed with knowledge, you have a much better chance of negotiating the rocky waters of investment. You can develop an investment strategy that further reduces risks. What you can not do is find a sure thing in investing. Certainly not in an investment that offers the chance of a large return. If you are not willing to take some risks, the savings account at your bank might be the best course for you.

Winston Goldstein is with MoneyMakerstop.com - your source for daily money saving tips.

Article Source: http://EzineArticles.com/?expert=Winston_Goldstein

The ruling by the UN has implications for all countries economies and stock markets and people are worried about their investments, so what are the implications and what could happen next and how can you protect your capital?

Let’s find out.

The background

The United Nations Security Council passed a resolution by a 14-1 vote that gives Iran until Aug. 31 to accept a multinational incentives package aimed at suspending its nuclear program, or face the threat of economic sanctions.

If Iran refuses the UN demand, the Security Council could move to discussions under Article 41 of the UN Charter, which provides for unspecified economic penalties.

The likely outcome

Will Iran comply? This is anyone’s guess but the odds don’t favor it on past performance.

America and Iran simply don’t get on and Iran has said on numerous occasions that it will not be bullied.

So, what will be the outcome?

Iran is the world’s second biggest oil producer and high oil prices are already affecting economic growth.

Interest rates are on the rise in response to inflation, economic growth is slowing and there is high likelihood Iran will use oil as weapon.

Could we see $100 a barrel sure we could if Iran does not play ball with the UN?

So what will happen to stocks bonds and interest rates and investor confidence, well let’s just say a lot of volatility could be ahead.

Alternative investments

Many investors are looking at alternative investments to diversify away from stocks and provide them with capital growth and their looking outside the major industrialized nations.

A favorite is Costa Rica land, while you may never have considered this as an investment you might after reading the following advantages:

1.Costa Rica land investment is increasing and many investors are doubling their money in as little as 1 or 2 years.

2. Land is a cheap, easy investment to do and in countries such as Costa Rica land is liquid and can be turned over quickly for profit.

3. Land is tax efficient, safe and overseas buyers get the same rights as residents.

4. Costa Rica land prices will not be significantly affected by stock market jitters as it is seen as an alternative investment and many Americans and other nationals are buying to get a better lifestyle cheaper and this trend will not reverse.

5. Costa Rica is stable both economically, politically and a safe haven for investors.

Potential triple digit annual gains and low risk

If you weigh up all the facts gains that run into triple digits each year minimal downside risk and a an opportunity to diversify from volatile stock markets and you have the perfect investment to seek high gains with low risk

The key to any land purchase is location pick the right locations and you will probably see gains that are way in excess of stocks and without huge volatility.

An investment to consider for anyone

Investing in land is cheap easy and a lot easier than most investors think and is the perfect alternative investment to seek big capital gains with low risk, If this is what you want from your investments take a closer look and you may be surpised at the potential a land investment can give you.

FREE REAL ESTATE ADVICE NEWSLETTERS, PDF, DVD’s AND MORE

For more info on all aspects of investing in overseas real estate visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html

Article Source: http://EzineArticles.com/?expert=Sacha_Tarkovsky

Recent significant stock market declines and portfolio volatility have many investors inquiring, once again, about the safety of annuity accounts. Consumers ask, “Are annuities safe from a recession? Do they maintain value when the market goes down? Will they lock in my gains each year?” The answer is, yes. Investing in a fixed, an immediate, or an indexed annuity policy will protect your investment from market losses.

Should You Wait Out Another Correction?

Unfortunately, many investors are suffering through similar pains to those experienced during the market slide from 1999 to 2003. Most (not all) brokerage accounts regained their losses from that period of time, but this recent downturn has quickly undone that progress. It is business as usual from the brokers, however. They simply tell their clients to wait it out. Yet, these same brokerage houses are busy selling stocks, trying to lock in profits while their individual clients absorb the losses.

What does History Tell Us?

For many years the brokerage industry has shunned the safety of fixed annuity accounts while individual investor portfolios decline. If you look at a historical chart of the S&P 500 (a leading stock market barometer) it peaked in March of 2000 at approximately 1,500. In October of 2007, the S&P 500 appears to have peaked again at nearly 1,500. Backing out any potential dividend gains, that is a flat rate of return for over 7 ½ years! The current value of S&P 500 (1,300 as of March 2008) shows a loss of nearly 12%. The outdated advice of buy and hold does not appear to be working. In order to create wealth, investment portfolios need to lock in gains from time to time. An indexed annuity will lock in gains each year and protect the principal and interest gained in the account.

It begs the question, why should mom and pop investors participate in this turmoil again? Do they experience a higher standard of living when the market increases? Usually not, but they certainly feel the financial pain when the market contracts by ten or twenty percent. Maybe younger investors can weather this storm again, but there are those who cannot afford to experience significant losses. Many senior investors are in retirement and counting on their nest egg to produce regular income. Or maybe they are near retirement and trying to decide how to best protect their IRA’s, 401(k) or 403(b) accounts for future income.

Is an Annuity the Answer?

Annuity accounts are very beneficial for investors who need reliable growth, guaranteed income, and protection of their principal. Maybe the brokerage industry is winning the battle in the media, but annuity investors have been winning battle of asset preservation for the last ten years. Annuity owners have been protecting their principal and interest while experiencing above average returns on their investment dollars.

You might ask yourself, “Have I not investigated annuity accounts because of what I know, or what I think I know.” If you are not sure, it may be worth learning more. A fixed or indexed annuity account can be a valuable alternative to a volatile brokerage account.

Learn more about the benefits of fixed indexed annuity accounts

A.M. Hyers has been working in the insurance and investment industry for over ten years. He owns and operates Hyers and Associates, Inc. an independent insurance agency doing business in Georgia, Illinois, Indiana, Missouri, and Ohio.

His agency offers insurance products in the individual, family, and small business group marketplace. They use the leading national insurance carriers to quote health insurance, health savings accounts, dental, and vision plans.

Other lines of insurance offered include life insurance, disability insurance, and long term care insurance. They use several carriers to quote Medicare supplement plans and Medicare Part D coverage for seniors. Additionally, the independent agents of Hyers and Associates Inc. offer fixed, indexed, and immediate annuity policies for individual and group retirement plans.

Insurance quotes in Georgia, Illinois, Indiana, Missouri, and Ohio

Individual, Family and Group Health Insurance Quotes in Georgia, Illinois, Indiana, Missouri, and Ohio

Article Source: http://EzineArticles.com/?expert=Adam_Hyers

With the future of the United State economy in question, there is a lot of talk about a recession. For this reason many consumers are looking for the right place to invest their money. A high yield certificate of deposit (CD) is one option. They are relatively safe and they provide a decent return on your investment.

A CD is a note from a lending institution that in which you invest a minimum amount of money for a specific amount of time. The lending institution agrees to pay you guaranteed amount of interest when the CD expires or matures. The terms of a typical high yield CD might include an investment period of 60-months with a guaranteed 4% interest rate as long as you invest a minimum of a $5000 investment. If the investment were under $5000 it would not longer be considered a high yield CD.

High yield CD’s are offered at most financial institutions. The terms and interest rates will vary from each bank so make sure you take the time to read all the fine print. When you are looking for the best high yield certificate of deposit one of the first places to start is with your local bank. If you find however that their terms and interest rates seem a little rigid and low then you can always try an online bank. These banks frequently offer interest rates that are a little higher than a local bank branch because they don’t have the same amount of overhead costs.

While there are other investment options available, a high yield certificate of deposit is the best way to invest money that you can not afford to lose. You could invest in the stock market but because it is such a volatile market, the risk of losing your money is exponentially higher. Stock values are constantly changing and you could lose your money as fast as you invest it. With a CD, the interest rate that you are given when you purchase it is locked in and will not change until you withdraw your money or the CD matures. The only drawback is that you will miss out on higher interest rates that may be offered after you purchase the CD. You could always take an early withdrawal and reinvest the money but by doing so you will be charged an early withdrawal penalty. If you decide that this is something you want to do just make sure that the higher interest rate will make you more money than what you will pay in early withdrawal penalties.

When you are looking for a safe place to invest your money a high yield certificate of deposit is a practical option. Your money will earn a high interest rate, it will never decrease in value, and it is easily accessible should you ever need to gain access to it. It is the safest way to invest your hard earned money.

For more information on a high yield certificate of deposit visit cdinterestratesguide.com today!

Article Source: http://EzineArticles.com/?expert=Tina_Porter