Plan your investment strategy| High returns | Low risk (2024)

FAQs

Plan your investment strategy| High returns | Low risk? ›

Some low-risk choices, like CDs or high-yield savings accounts, can be reliable ways to generate a better return than you'll find in a traditional savings account. In general, expect your low-risk investments to have returns in line with the current prevailing interest rates.

Some low-risk choices, like CDs or high-yield savings accounts, can be reliable ways to generate a better return than you'll find in a traditional savings account. In general, expect your low-risk investments to have returns in line with the current prevailing interest rates.

Safe assets such as U.S. Treasury securities, high-yield savings accounts, money market funds, and certain types of bonds and annuities offer a lower risk investment option for those prioritizing capital preservation and steady, albeit generally lower, returns.

Money market accounts, certificates of deposit, cash management accounts and high-yield savings accounts all carry FDIC insurance. Treasury bills, notes and bonds are backed by the U.S. government, making them another low-risk investment option.

Are low risk investments worth it? ›

The lower the risk, the lower the potential returns. The higher the risk, the higher the potential returns. Although, what you can expect and what you actually get may differ. If you'd rather try to protect the value of your money, you may have to sacrifice the prospect of greater returns.

“Investing in a diversified mix of stocks across different sectors and geographies can offer the potential for returns at or above 5%,” said Kovar. “Consider index funds or ETFs that track a broad market index like the S&P 500.

While the product names and descriptions can often change, examples of high-risk investments include: Cryptoassets (also known as cryptos) Mini-bonds (sometimes called high interest return bonds) Land banking.

Where to safely keep cash at home. Just like any other piece of paper, cash can get lost, wet or burned. Consider buying a fireproof and waterproof safe for your home. It's also useful for storing other valuables in your home such as jewelry and important personal documents.

If you choose to invest a lump sum, don't just put it all in one stock. It's best to find a handful of individual stocks. If you don't want to take the time to do the research, consider buying a mutual fund or an ETF that gives you exposure to a large number of individual stocks.

investments like preferred stocks, utility stock, fixed annuities, brokered cds, offers the best combination of low risk and high return.