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Gemma | What is the safest way of investing? |
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walt17jr
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First, you need to determine what safety you want. Do you want safety of your principle, or safety of your purchasing power? Also, what time frame your are looking at will be a major factor.
For safety of principle, you should stay with CDs or bonds. Joe’s response has some good recommendations. If your time frame is short stay here.
For safety of purchasing power you will need to accept some risk to your principle. But if you are looking at a long time frame you can invest in the stock market with a reasonable level of confidence that you will do better than you would in a CD or bond. You can invest in the stock market using mutual funds, ETFs or individual stocks.
For mutual funds or ETFs I would recommend you check out Vanguard as a starting point. They have the lowest cost. Go with broad based funds which will provide built in diversification. And put some of your money into foreign assets. This is the easiest way.
If you prefer individual stocks, begin by studying the investing and the market. A good source is: www.investopedia.com
Use a discount broker (such as Scottrade) to keep your costs down. You can use ETFs initially, and then add individual stocks later.
To start open an IRA if you are eligible. Then after that is fully funded, invest outside of it.
What is short and long time frames? That is debatable, but in my opinion, less than five years stay out of the stock market. Over ten, you should do OK. |
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Dentist H since 2001
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all investing is a risk
I have a college account for the kids. i can choose mild risk, moderate risk or high risk stocks for them. Right now since they are little, we are in the moderate to high risk. They said once they get older (closer to college) we'll move it to low risk.
Definitely the safest way is DIVERSIFYING!
Some stocks, some bonds. One will go up and one will go down. hire an investor you can trust. Get "no load". Check out Suze Orman and Consumer Reports on investing strategies. But "Investing for Dummies". |
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Joe
 |
Consider the Vanguard Prime Money Market Fund with a current compound yield of ~4.19% APY.
https://flagship.vanguard.com/VGApp/hnw/FundsSnapshot?FundId=0030&FundIntExt=INT
If you are in a high tax bracket you may prefer their tax exempt money market funds:
https://flagship.vanguard.com/VGApp/hnw/FundsByType
Sometimes other institutions will have a higher teaser rate, but Vanguard tends to have the highest yields I've found over the long run. (Vanguard money markets are not FDIC insured, however.)
Article on teaser rates:
http://www.marketwatch.com/news/story/banks-advertised-rates-dont-always/story.aspx?guid=%7B0A13B6E2-FFB2-4E2B-BD42-E2D1E01C52E5%7D
Bankrate.com provides links to CD's with high interest rates as well as high interest rate banks.
http://www.bankrate.com/
http://www.bankrate.com/brm/rate/deposits_home.asp
ING and HSBC often have rates close to Vanguard, and most of their products are FDIC insured. You can check these at the following links:
http://home.ingdirect.com/open/open.asp
http://www.us.hsbc.com/1/2/3/personal/savings?code=husa
While the ways mentioned above are "safe", they are not going to return much. After taxes and inflation, you may be slowly losing money. If you are investing for a long period of time and are willing to accept some volatility, you should consider putting some money into no-load low-expense mutual funds. These are not guaranteed, but over the long run produce much higher returns. |
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kimiyasdad
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i think CD's are the safest way to. i like to have my cd's in a cycle like this so every month i have money freed up in case of emergency or just to add more to it and reinvest. i do it like this:
Jan- 3mo cd
Feb-3mo cd
Mar-3mo cd
Apr-first one matures and you can add to it and renew.
May second one . . . . and so on
this way every month you have access to some money if needed or if you saved more, you can add to the cd. no risk of loss |
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Donald B
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There are several safe investing techniques.
Your first option should be to fund fully a retirement account. If you do this, and you have extra cash, then one of the best things you can do is open a DRIP Plan.
These powerful investment plans are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.
They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down. They are a must for any serious investor.
I strongly recommend looking into it. They are great plans. |
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Yarcofin
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One of the major axioms of finance/investing is the "risk-return tradeoff." People don't take on additional risk in investments without expecting a higher reward for their risk. For this reason, the safest way to invest is guaranteed not to be the best.
Savings accounts at a bank is probably the safest way to go, followed by government bonds. These should get you about 4%. In comparison, the stock market is more risky but offers an average return of 10-12% if you know what you're doing. |
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Doc H
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Managed risk invesment.
Try this,
No need to guess.
In Fact, Do Nothing!
http://automaticforextrading.blogspot.com/ |
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Celso F
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Personally, I prefer day trading rather than investing, is way far profitable.
I have been trading successfuly for more than 10 years and I can tell you that:
www.onehourtrading.com
is the BEST guarded system on making the largest and fastest day trading profits you´ve ever seen.
This is the money-making SECRET NASDAQ Market Makers and NYSE Specialists don’t want you to know! (how they make big fortunes in fast-trading profits... and... if asked about this secret... they’ll deny its existence to their last breath!).
You won´t need any other system, strategy, book or software after you rewiev this site.
After this you won´t need any mentor to tell you what to do, you will be able to find big profits opportunities evey day, and don´t rely on anybody.
Trade well, |
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Eric C
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1) Don't 100% trust any financial consultant
2) Learning how to invest by taking any course
3) Do the investment by yourself, so you can learn from your mistakes.
4) Review your strategy on investment for a regular period
5) This is the only way to plan for your retirement |
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Set
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There really is no guaranteed safe way. The other responses I've read are conventional and I would have agreed seven or eight years ago, however, with the value of the dollar falling to all time new lows and the strong possibility that this trend may continue, I think that for right now the best and safest place to be is in foreign currencies and gold. I don't think most people would agree with me, but only time will tell. Here is a good link to a site that is very informative on the precious metals scene.
http://www.jsmineset.com/
America is bankrupt and the FDIC can't back all of the money in all of the banks if these banks fail as they seem to be destined to do because the sub-prime lending mess they have their selves in. The main stream news will not tell you the truth because it could easily cause panic. We are in a recession and some supposedly credible sources are just beginning to say a recession is possible. Actually a depression like the one in 1929 is possible. I think the Fed is propping the stock market up until Dubya gets out of office and I pity the position the new president will be in trying to undo all of the damage he's done to the American economy.
My wife's IRA is 100% in the Vanguard Prime Money Market Fund that Joe recommends and she wants to leave it there so I just take the insurance route in case I'm right and am buying gold and stock in gold mines. My largest stock holding right now is Yamana Gold (AUY) and it is doing quite well. If you read the info on that site I gave you will see that they don't just think gold will double from here, they claim to know it. A lot of other people agree. I have read some reports that believe the dollar will fall another 30% over the next year. If that happens then we are in serious economic trouble and it won't matter how many of them you own if they are worthless. The dollar, like all other fiat currency is backed by nothing tangible and that is why gold is very appealing and safe at this point in time. |
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urbanrebel23
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Probably government backed bonds. |
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NIEYAPHOO
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research so u know what your gewtting youself into! |
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stevexnelson
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Invest in treasury bonds (US Govt. bonds) or certificates of Deposits through your bank.
Good luck. |
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lady
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invest in floppy disks |
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