May 19, 2024

Now more than ever, it is important to maximize the rewards of our investments while not making them too risky.  This is obviously a delicate balance to make, though.  How can we achieve it while still making a profit, seeing as the usual advice is to go with whatever comes with both the highest risk and the highest potential for a reward?

As you may have already guessed from the title of today’s article, that is precisely what I will be delving into today.  Investing can be quite intimidating to dip our toes into anyway, really, even without considering this aspect of it.  For the longest time, I avoided it like the plague because it seemed far too complex for me.  I am hardly a fan of math, after all.

However, I have found that with a little bit of research and determination, anyone can make it work!  The key is to not give up and to do proper research in terms of what types of investments you should make.  The answer will not be the same for everyone, something that I think is important to bear in mind as we proceed.

Consider looking into some of the other sources as well.  An example is this one, https://www.forbes.com/advisor/investing/best-safe-investments/, although I would never recommend taking any online listicle as gospel (including this one, in all fairness).  Instead, consider them as some friendly advice to help you along the way of your investing journey.

Defining a “Safe” Investment

It is probably a good idea to start by explaining what we can consider to being a “safe” investment versus a “risky” one.  Thankfully though, it is not too hard to get a handle on.  Basically, it is a difference between having a higher or lower chance of breaking even at the very least (and hopefully garnering a profit) and losing money on an asset.  

Admittedly, it is hard to get this point across without utilizing examples, so I will not be lingering here for too long.  Being able to identify some of the distinguishing features between them is quite important, though.  With this knowledge, let us move on to some of the choices you could make.

Risky Investments: Prevalent Examples

Let us go ahead and get this out of the way right now.  Obviously, there are going to be a ton of assets that can fall under this umbrella of being higher risk.  Knowing the warning signs is probably the most critical aspect here.  However, I will discuss a few of them in particular as well.

Cryptocurrency is easily the one that appears to be most prevalent in our pop culture right now.  The not-so-affectionately named “crypto bros” are everywhere trying to espouse the joys of this investment and how it is totally guaranteed to make you money.  Spoiler alert: none of that is true in the slightest.

In fact, there is zero proof that it is beneficial in the long term for anyone who has invested in it.  The hit that the crypto market took recently demonstrates that it is no better than traditional stocks in that aspect.  The same can really be said for pretty much any of the related assets such as NFTs (non-fungible tokens), so buyers beware.

Warnings signs that something might be at higher risk are pretty easy to spot once you know them, luckily.  Lacking proof for the long-term is a huge red flag.  Additionally, any “get rich quick” type schemes should probably be avoided as well.

Safe Investments

On the complete opposite side of the spectrum, we have the safe investments.  These are the ones that do not put nearly as much risk on the purchaser.  This is something that most folks will find much more ideal than the precious section’s options.  

What are some examples of this?  Well, I will go more in depth in that in a moment here.  First, let us discuss some of the hallmarks of this type.  As you can probably expect, it is pretty much the inverse of what I covered above.  Pages such as this one can cover it in a bit more detail, but essentially you will want to look for proven methods of investing that have a rich history behind them.

Real Estate

I include this one first because its position here has become more tenuous in recent years.  However, it is hard to deny that we will always need properties (and homes).  Shelter is a pretty basic requirement for comfortable living, after all.

So, it is really no wonder that most folks consider it to be a fairly secure asset to acquire.  Even when the market values go down, you can just hold onto that property and sell it at a later date.  Still, because of how strange the housing market has been in the wake of the covid 19 pandemic, it would probably not be my first choice anymore.

Gold (and other Precious Metals)

Precious metals are a market standard at this point.  They have been around for centuries if not for thousands of years, and we have seen firsthand how their prices raise and lower over the years.  The thing is that this is the biggest appeal about them.  Their value remains relatively static when looking at it on a wide scale.

Admittedly, it can be hard to sort out where to get them from.  For that, you can go to Bonds Online to see some of the resources that they have to offer on this front.  Of course, there are other places as well, but I figured I would at least offer you a link to one of them.  Getting to know the vendors is a huge part of being successful when investing in gold.

You see, there are a ton of competitors that exist in this market, and each is trying to convince you to purchase bullion from them.  Note: bullion is not the only method in which you can invest in precious metals and gold, but generally speaking it is the safest because it will not lose value as long as it does not get damaged or tarnished somehow.  Basically, just keep it safe and clean and you will be able to break even at the absolute least.

Why do people go this route, though?  Mostly because it allows them to diversify their portfolio effectively and in a manner that is secure.  You would be hard-pressed to find an investor who wants all their assets to be in paper currency, especially right now as inflation percentages skyrocket across both the country and the whole globe.

Treasury Bonds

Concluding with this might seem like an odd choice, but do not worry.  I did not exactly save the “best” for last.  Instead, I held off on this one because it is slightly contentious.  Financial experts agree that utilizing them requires a lot of faith in the United States government, which is not something that everyone has right now.

Still, they are considered relatively secure by plenty of people, so they are worth the mention.  The way it works is that you purchase the treasury bond, which serves as a loan to the U.S. government.  You earn interest on it the longer that you keep it.  Then, once you are ready to cash it in, you can take it to your bank.

There you have it – a conclusive guide to several of the ways that you can make safe investments.  This is not all-encompassing, of course.  Feel free to do your own research to find assets that I did not mention if nothing here spoke to you particularly strongly.  Just remember those red flags and green flags that I mentioned when you venture out on your own to avoid getting scammed or putting your money into something risky!