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.
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.
Gary Pearson is an accomplished niche website developer and author.
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