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How the average person can save money quickly and easily

Fool Proof Investment Plans

bws-11There’s always a risk of not getting high enough returns on investments or losing, but there are a small handful of fool proof investment plans that assure your money will gain value and be as safe as possible from losses, barring an entire financial collapse. With changing times and higher living expenses, it’s crucial to invest your hard earned cash in the right places.

The U.S. stock market has reached record levels, triggering millions of investors to search for other assets. The safest investment plans involve low risk. When investors start nearing retirement age, high return investments with high risk become less attractive.  These are Getting Money Smart’s fool proof investment plans.

1- Certificate of Deposit

A certificate of deposit is the most low risk investment plan on the market today. You can get a CD from a bank and deposit money for a stipulated length of time at a pre-determined interest rate. Savers start earning a fixed interest rate on their money immediately. Interest rates do not change despite market fluctuations. Deposits are guaranteed by the FDIC up to $ 250,000 per account.

2- Money Market Funds

A money market fund is predominantly designed with an aim to insure you against monetary losses.  It is a mutual fund that protects your funds paying a low-interest rate, while fund operators try to maintain a $1 for each share of its net asset value (NAV). Although the interest rates offered in this investment plan are low, you can park your cash safely.

3- Cash Value Life Insurance

Most cash value life insurance policies let you take a loan against the investment value, while getting a tax exemption. This plan pays out cash benefits to beneficiaries upon the death of the insurer, and most cash value insurance policies let you take a loan against the investment while getting you a tax exemption. Life insurance policies funds are often misspent by recipients, but these policies can save beneficiaries a lot of hardship after the insured party dies.

4- Preferred Stock

Preferred stocks come with a greater level of risk than all the other fool-proof investment plans, but are not like all other stocks where there is always a high risk of losing your principal investment with market volatility. This type of stock covers both equity and a portion of the corporation’s debt. It is the smartest way to receive dividend payments, while owning shares of a company.

5- Annuities

Annuities can actually help investors to have a stable financial profile for a prolonged period. Annuities require investors to put a lump sum of money into your annuity account for a guaranteed return. si-2The yields offered may be variable or fixed and usually average about 2 to 4% above prevailing market interest rates. The rate of return is most commonly tied to changes in the stock market. Annuities may be the safest fool proof investment next to a CD, but like any investment they come with at least some amount of risk.

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