You may be asking yourself, “is now the time to invest?” With everything going on in the world, all the uncertainty, it may seem like a scary time to put your money in anything.
Believe it or not though, there has never been a better time to start investing. The earlier you can begin investing, the more time you allow for your money to grow and compound.
Starting early is so beneficial thanks to compound interest – what Albert Einstein referred to as the “most powerful force.”
Keep reading to discover low-risk high-yield investments that will get you started building wealth today.
1. Preferred Stock
Landing first on the list of safe, high yield investments is buying preferred stock. With preferred stock, you get the best of both worlds:
- Regular payouts
- Ability to grow
Regular payouts with preferred stock come in the form of dividends that pay a rate higher than treasuries and CDs. Preferred can be converted to cash in a straightforward process, lessening some of the risks associated with them.
Preferred stock doesn’t come without its risks, though – you will still be subject to market fluctuations. However, these types of stocks typically come with credit ratings from established firms, lessening some of the risks.
If the company you are invested in goes bankrupt, preferred shareholders will receive funds before common stockholders.
2. Fixed Annuities
Fixed annuities are a common safe, high yield investment for those looking for guaranteed payouts.
There are several different types of annuities:
Annuities are a way of ensuring income to complement other retirement incomes. However, fixed annuities are going to give you the safest way to grow your wealth. With a fixed annuity, the insurer guarantees a certain payout at a specific date in the future.
The payouts for annuities are nothing amazing but can give purchases another income source when they need it. The problem is the payouts can deteriorate over time from inflation. If you are worried about this, there is an option to get inflation protection – but it will cost more.
3. Treasury Notes
Buying treasury notes is considered a very safe investment since you are purchasing U.S debt, and the United States has always paid its debts. Buying debt is only as good as the seller selling it, making it critical to buy from trustworthy sources.
The fact U.S government debt is considered safe keeps interest rates fairly stable but can also mean lower yields. Keep in mind interest rates are near historically low prices and could mean less return.
Treasury notes can be bought and sold directly, allowing for ease of liquidation.
4. Money Market Funds
Money market funds are another short term high yield investment that’s an attractive option for those looking to diversify and help minimize the risks.
Money market funds are created through grouping together with other high yield no-risk investments such as:
- Certificate of deposits
- Short term bonds
- Treasury notes
- Repurchase agreements
These types of funds are some of the lowest risk investments because of the diversity within them. There is no guarantee with money market funds, but they are sponsored by a credible investment fund.
Money market funds are insured by the federal deposit insurance corporation (FDIC) and work similarly to a standard mutual fund. For advice on what investment is best for you, it may be best to speak with a high yield investments group to review your options.
5. Corporate Bonds
Just like buying government bonds, purchasing corporate bonds gives you a better chance for high yield, but it also has more risks associated with them.
Buying corporate bonds from profitable, well-established companies can provide better returns than government bonds or money market accounts. However, it is vital to only buy from highly credible companies with an established history of paying off debt.
You may be offered higher interest for a sub-par corporate bond, but it can end up costing you more in the long run.
6. Dividend-Paying Stock
Dividends are one of the greatest ways to build wealth and can make excellent high yield investments. Investing in high quality, dividend-paying stocks can be a fairly safe investment that offers a chance for high returns.
Dividends, throughout history, have been one of the best ways to accumulate wealth and grow your savings. According to recent research, 78 percent of the returns stemming from the S&P 500 stock index fund can be traced back to reinvested dividends.
Typically stocks like real estate investment trusts and high-quality utilities can pay stable dividends while offering a relatively safe option. These types of stocks have historically been reliable forms of making money, but they don’t come without its risks.
Even high quality, blue-chip stocks are subject to market fluctuations that can severely impact your portfolio. Diversification is important when purchasing individual common stock because you can minimize the losses incurred.
7. Real Estate Crowdfunding
Real estate investing can produce significant returns, but many people don’t have the initial capital requirements to get started. Now, with the help of crowdfunding, you too can invest in real estate and watch your money grow.
You receive most of the benefits that come with owning real estate without all the headaches. You get to enjoy appreciation without all the nonsense that comes with owning and renting real estate properties.
It is a fairly straightforward process, as well. All you need to do is either sign up with an online platform or join a crowdfunding group.
Although the risk is minimal, real estate investing does come with its risks as well.
Looking for Additional Low-Risk High-Yield Investments?
Low-risk high-yield investments – the perfect combination of risk management and growth that many individuals are looking for. If you are looking to accumulate wealth and grow your money, these investments are a great place to get started.
For additional advice on how to grow your wealth, check out the rest of our website!