Thursday, August 18, 2011

The Best Safe Investments

The Best Safe Investments

Many people spend their time working hard to earn money for the security
and well being of their family, not only for the present day, but also for the
future. If this sounds like you, then you will probably been keen to invest
some money and hope that you see a good return. There any many options when it
comes to investments. Some are risky and some are safe. What you need to know
is which are the best safe investments.

It would be comforting to know that any money that we put into an account,
or use to buy stocks with, is going to be safe. Unfortunately it is not always
easy to know which are the best safe investments and which are high risk. As a
general rule, you will probably find that if the percentage return on your
money is fixed at a fairly low rate, the investment will be secure. If,
however, you buy high risk stocks and shares, the return will be potentially a
lot higher.... or possibly you may end up with nothing!

The Federal Government has an investment scheme which is very secure. If
you are keen to know more about just which are the best safe investments, you
should have a look at the Government Treasuries. There are three types of
treasuries, all of which are similar aside from the length of the term.
Treasury Bills have a term length of one year or less, Notes are offered from
one to ten years and Bonds for ten years and longer. The Government will use
the money that you pay for these treasuries for investment and, in return,
will guarantee you a fixed rate of interest. This interest rate is not high as
you have the backing and 'full faith and credit' of the United States

Government Agency Bonds are a little more risky but offer a higher interest
rate. They do not carry the same 'full faith and credit' backing of the
Government, but are still some of the best safe investments available. One of
the downfalls that you may be concerned about with GABs is the possibility of
the loan associated with your investment being prepaid. If this loan should be
paid early and this falls during the allowable call period of your investment,
you may find the life of your bond is decreased and no further interest paid
upon it. Both treasuries and bond are exempt from state and local taxes. There
other safe investments that come with the backing of the Government, but the
above two are probably the two most common.

Any schemes that carry the guarantee of the Federal Government are going to
be the best safe investments. Although you may find that you are not getting a
very high interest rate with this type of investment plan, as least you will
know that you will have a safe and secured return on your hard earned money.

Investigate in 2008 - Do Your Research
Before Investing

You know that famous saying; "Look before you Leap" or how about the one;
"Buyer Beware" or how about this one; Investigate in 2008? Prior to making any
major decision in life you need to observe, gather information and then act.
Kind of like the command before firing a weapon; "Ready, Aim, Fire!" the best
decisions are made with adequate information and data.

Consider if you will all the folks that bought a home at the top of the last
real estate bubble. It's not like everyone did not see the bubble bursting, bet
still, so many folks joined in the feeding frenzy, bidding up real estate prices
to ridiculous levels.

It's not like everyone who was anyone in the financial industry did not see
it all coming. Sir John Templeton warned folks, so did past Federal Reserve
Governors. Warnings were local, regional, national, and many came from bankers
overseas, all predicting the bubble would burst. Of course, bubbles always
burst, this is the nature of things.

Remember the Silicon Valley bubble burst, that sure took its toll on America
didn't it, and the recession that followed hammered the stock market and the
double whammy of 911 and we lost some 7 Trillion Dollars from our economic

Now let us consider the advice that we should give those up and coming
consumers and investors. You must investigate before you buy and never invest in
things you do not understand or just because everyone else is doing it. Always
do your research and investigating of any investment opportunity prior to
putting your financial future up for the risk.

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