What is the best and safest investment?

I am 38 yr old with a low income, so I can't afford much plus I have heard horror stories about how people have invested their whole life saving and then something goes wrong and they lose it all. I also have very little to start with. Can someone please lead me in the right direction?

with a small amount to invest being careful is important. CDs are among the safest, but inflation and taxes consume more than their share of your investment dollars. Therefore, in order to stay ahead of the dreaded inflation and taxes you are going to have to opt for somewhat more risky investments. Those who have suggest mutual funds, I agree with. But mutual funds are risky and the very large number of them to choose from can make the task daunting. Also you need to be very concerned with your investment horizon. If less than 5 years, mutual funds may not be a real good choice. If over 5 years the risks become less and the expected return more, normally about 10% annually.

If you have less than $2500 to begin with for investment, most mutual funds are beyond your reach because that is the normal minimum required from mutual funds like T Rowe Price, Fidelity, and Vangard (the better mutual fund companies). There is a mutual fund company that has excellent mutual funds where you can begin with $250. It is American Funds. There is a catch however. This company sells only front end load funds. They have a 5.75% sales charge on the class A shares. They do sell class C shares with a much higher expense ratio with no front end load. Their Income Fund of America is a conservative fund with an excellent long term record.

Here is a suggestion. Put 1/2 of your savings into CDs. Put the other 1/2 into mutual funds, if you can afford to leave it there for a minimum of 5 years. If you have $2500 to begin with go with Fidelity or T Rowe Price. If not consider American Funds.

Here are the links.

American Funds

http://www.americanfunds.com/default-home.htm

T Rowe Price

http://mutualfunds.troweprice.com/?rfpgid=10875&scn=Mutual_Fund_I_Want_to&origins=prospect

Fidelity

https://www.fidelity.com/

Open a ROTH IRA with a broad market index fund. You can use a low cost mutual fund or go to a discount broker and invest in ETFs. Either way you will be able to add a little bit every few months as you are able. Then don't worry about what the market does. By the time you are ready to retire it is almost certain to be up in value and worth more than CD investments would be.

No investment is ever totally safe. However, high yield savings accounts are the safest investment. You can make about 5% on this type of account, and banks have FDIC insurance so your money is safe (to $100,000). 5% interest is much higher than a standard savings account pays. Also, this money is easy to get at should you need it in an emergency. You might also put some into CD's - these pay a set rate, for a set period of time (3 mth - and up). You won't have access to the money during that period without paying hefty fees. Money market accounts have similar interest rates as high yield savings accounts. These accounts generally have higher minimum balance requirements, and requirements as to how many withdrawals you can make each month. And there are always savings bonds - of course these don't pay a full amount until a future date also. As far as safety goes, these are about the safest you can get.
If you don't have much to invest, and there is any possibility you might need the money you should stay away from mutual funds and stocks. These are great investments. And over time they do very well. But if you should need the money, at a time when the market is down, then you may take a loss. If you have the time to learn investing strategies, and accumulate money in your safer investments - then you can beging taking more risks.

i wouldnt say cd's are risk free, maybe the money invested wont be lost at all,but i put some importance on inflation

the original post says they are 38, they may have nearly 30 years to invest, investing in cd's would be a huge waste (if only in cd's i mean) the value of their money may actually be lower after 25 years if inflation rises

cd's government bonds and that type may be the safest to not lose,but you also wont really get ahead in the long run

say 25 years in funds, with a low estimate of 9%, put 10k in you end up with over 86,000 dollars, with a 4% average from the safer investments you end up with about 27000, huge difference, especially if you add in more investments

with low income you have tostartmsall bank cd's or online banks are you best bet build up from there,.

Actually, certificates of deposit (guaranteed investment certificates in Canada), government savings bonds, federal treasury bills and other federal government bonds are the safest. They don't pay much, but then, they are risk-free.

If you want higher (potential) rewards, you will need to accept some risk. Check out this site for more: www.investored.ca.

Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.

http://www.tutorialforyou.net/investing/

wish it will help you.

Good Luck , Best Wishes!

Invest in a mutual fund. I invest in Columbia Funds Acor Select fund and have been really happy with the returns. If you just want to invest on your own, like on Ameritrade or something like that. You can study the market, like my father, and have good results, but if you want the safest investment, Energy. Energy is always in demand, more and more, Uranium is a good market right now. Its jumped by 40% in the last 5 years and will only go higher, but for a long term investment its tough to say. Maybe some new technology will come along and replace it, or maybe laws will be passed to limit its use.

Bonds are your safest investment. Especially government bonds, they are virtually guaranteed.

go with balanced mutual funds that too only in SIP route. if u r from india u can contct me on sheshadri_1999@yahoo.com

First Question:
No toro poo-poo here: The answer: Yourself!
Y-O-U! You!

Who knows you, better than you?
No one - except Y-O-U!

Who Knows your habits better than you?
No one - except Y-O-U!

Who knows what you like and dislike better than you? No one - except Y-O-U!

Before investing in anything, you have to investigate. Do a search and do research:
1] online
and
2] at the local library or libraries.
and
3] Ask questions of knowledgeable people.
There are two old sayings:
A] "The only stupid question is the question you don't ask."
B] "So, you thought --- and think --- education is expensive? Just wait until you try ignorance."

Remember this: When you are in a group and you or someone else asks a question; that question being asked could be a question one or more folks have on their mind, BUT are afraid to ask.

DON'T be afraid to ask questions - and keep asking questions until you get understandable answers to your questions. This requires persistance and tenacity.

Will some folks think you're a pain in the neck [and another place]? Absolutely. Don't settle for
"fluff" answers or "smoke and mirros" answers.

THEN make your decisions.
HOW? Benjamin Franklin developed a very simple, yet very effective system.
Sit down in a very quiet place. No TV, radio or any other interrupions.
At the top on a blanks sheet of paper, write the situation/challenge/problem you are faced with:
Should I/we do .....?
After the question draw a verticle line down the middle and a horizontal line across the top of that vertical line - much like a very large upper case "T".

On the left side of that middle vertical line, write "For" or "+".
On the right side of that middle vertical line, write "Against" or "-".

Under that +, you number and write down ALL those things or points which could help you to go FOR that question.
Under that -, you number and write down ALL those things or points which could help you NOT to go or Against that question.

Look at the numbers: When the + outnumber/outweigh the -, do it. When the - outnumber/outweigh the +, don't do it.

Second question: Read just 5 pages a day of any of the following inexpensive, yet easy-to-read books. You don't have to buy all of them at one time, but you should make the investments.
In no particular order they are:

"How to Read a Book" by Van Doren [this is the gentleman's last name - 2 words - one last name]

"The Richest Man in Babylon"
by George S. Classon

"The Magic of Believing" by Claude M. Bristol

"Think and Grow Rich" by Napoleon Hill.

"How to Win Friends and Influence People" by Dale Carnegie.

"Acres of Diamonds" by Russell Cromwell

"The Greatest Salesman in the World" by Og Mandino

Books on those subjects which interest you.

Believe it or not, when a person invests only one hour - each and every day - reading about those subjects which interest him/her, he/she should become an expert on/about that subject or field within 5 to 7 years. Sorry, you won't get a degree or a diploma, but you could be an expert within that time.

I wish you well.
Our Family Slogan: "Every Good Wish to You and Yours!" I wish you, your family and your friends nothing but the absolute best of everything life has to offer.

Very Truly Yours,
Ron Berue

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