With the high-interest rates and inflation – that keeps increasing – one of the questions on everybody’s lips is, “What is the safest investment right now.” If you’re asking the same question, maybe you should consider putting your money into these investment opportunities explained below.
These investment opportunities are considered “safest” because they are low-risk, low-volatility, and high-yielding investments. If you just thought about bonds, yes, you’re right! Bonds are among the safest places to put your money at the moment. But there are other opportunities worth checking out.
What Is The Safest Investment Right Now?
1. Money Market Mutual Funds
Have you thought about getting into the mutual funds niche? That could be one of the best markets to bank on at the moment. Money market mutual funds offer investors absolute liquidity; you can pull out your investment capital at any time. More so, money market funds experience very low to virtually no volatility. You can get started with your bank – many banks offer money market mutual funds, as your bank if they do.
2. Treasury Notes, Bills, and Bonds
It might not offer the highest yield you may have expected, but going into treasury investments can earn you more than a savings account, and it’s less risker too. If you’re going to take this investment route, your first consideration should be investing in government bonds – the yield ranges from 2.46% to 3.58%. Government (treasury) bonds offer much more stability than other forms of investments.
3. High-Yield Savings Accounts
This never gets old! You’re getting high yields on your capital while also being sure that there’s very little to zero possibility of losing your capital. High-yield savings accounts are commonly referred to as the “gold” of safe investments because they are insured by the Federal Deposit Insurance Corp., FDIC.
4. Certificate of Deposit (CD)
A certificate of deposit (CD) is federal-insured savings account with a fixed interest rate meant to last for a defined number of years. This type of low-risk investment is recommended for investors who are looking to lock away some amount of money they’d need to re-invest at a particular future date. Common duration terms for CD are one to five years and, in some cases, up to seven years.
5. Dividend Stocks (Real Estate and Utility Stocks)
Investing in (common) stocks that pay dividends can be one of the safest havens to put your money into. The bests of this type of investment are utility stocks and Real Estate Investment Trusts (REITs), which are historically considered safer, less volatile, and more reliable in dividend payments. As of September 2022, utility stock dividend yields were at an average of 2.93%, while that of REIT was around 2.59%, according to NYU’s Stern School of Business.
6. Fixed Annuities
An annuity is a contract between an investor and a company – often made between an investor and an insurance company – where the investor pays a fixed amount of money for some time to secure an upfront payment. There are many ways annuity contracts can be structured – the main reason why many invest in this idea is because the “return” is guaranteed.