Low Risk Investments - Playing it Safe

Some portion of everyone's financial portfolio should contain low risk investments, especially those people with a low risk capacity, such as senior citizens and young people with dependents that are counting on their money being there for the future. Even though some low risk investments may not return much more than a savings account, these are investments towards future goals, and not savings, which are meant to be available pretty much anytime for unforeseen expenses. Consequently, savings accounts are not considered low risk investments.

Types of Low Risk Investments

In this interactivity, you will have the opportunity to look at the different types of low risk investments most people have, and see which ones may be right for you. Click the player button to begin.

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Prepaid college plans can also be considered a low risk investment. All of these investments can be a safety net for the present, and a foundation for your future. Each of these long term investments has different maturity rates, tax considerations, and may have penalties for early withdrawal. Make sure you compare all of these factors when it comes time to decide where to put your money.