Wednesday, September 14, 2011
Is Anywhere Safe to Invest your Money? - When it comes to investing, you can go two ways. You can look for the highest returns, but in order to get those high returns you need to take a higher amount of risk. Or you can choose safe investments to keep your principal protected. While these safer investments might not earn as much, there is no risk that the money will evaporate the next time the stock market enters a bear market phase. A money market account works much the same as a savings account, but the interest rate tends to be higher. The minimum balance requirement might be higher too, so make sure you have enough liquid cash to open the account. A money market account is a good place to stash your emergency fund, and as you add more money to the account, the amount of interest you earn goes up as well. Be sure to shop around for the best rate, since the interest rates on money market accounts can vary quite widely. Treasury securities provide absolute safety and security for investors who prefer to avoid risk in their portfolios. Like other bonds, buying a Treasury bond means you are in essence loaning out your money. But unlike other bonds, Treasury securities are backed by the full taxing power of the United States government. You can open an online account at TreasuryDirect.gov and use that account to buy and sell savings bonds, Treasury bonds, Treasury bills and other instruments. You can also purchase many of those Treasury securities directly from your local bank. Is Anywhere Safe to Invest your Money?