5 Safest Ways to Invest Your Money if You’re Terrified of Risk [Presented by Investment Mastery UK]

Here’s a scenario.

You are concerned about your financial future.

You ponder whether your job is in jeopardy.

You lack savings.

Every penny you have is being drained by the cost of living.

Perhaps you're falling into debt.

There are others besides you.

But that is no comfort.

You need to figure out how to make more money. Here’s a scenario.

You are worried about your future finances.

You wonder if your job is on the line.

You have no savings.

The cost of living is draining all the money you have.

Maybe you’re sliding into debt?

You are not the only one.

Grow your wealth over time.

You're considering making an investment.

It might be the answer, in your opinion.

However, you don't have enough faith in it.

You fear taking the chance.

That is fair enough.

There is some risk.

But not all is lost.

Even now, you can invest.

There are risk-free ways to invest.

Here are the 5 Safest Ways to Invest Your Money:

Real Estate Investing

Real estate investing is a popular topic.

There are many books available that explain how to avoid losing money when investing in real estate.

The goal is to identify properties with a strong potential for value growth and have them professionally managed.

Real estate funds typically return between 6 and 7 percent annually and are regarded as one of the safest investment options.

Real estate is one of the safest investments available even though it is not the current trend.

You can invest in either commercial or residential real estate, but bear in mind that upkeep and repair expenses will account for a sizable portion of your profits.

Stocks and Mutual Funds

Although it takes a very long time to see any return, real estate can be a fantastic long-term investment.

A much more accessible way to invest is in stocks and mutual funds.

You can buy a mutual fund that holds a sizable portfolio of stocks and bonds, or you can buy a stock fund that invests in a wide range of businesses from various industries.

Due to the wide variety of companies available, stock funds are typically easier to access, but mutual funds are typically more affordable.

Both options have benefits and drawbacks, so you must decide which one best fits your circumstances.

There is much discussion regarding which investment is riskier: stocks or funds.

Bonds

A government or company may receive a loan in the form of a bond.

The business or government is borrowing money from you, and they have a deadline by which they must repay you.

While some buy bonds to diversify their portfolios, many do so because they are a reliable and secure source of income.

Many bonds currently have very low interest rates, making them a low-risk investment option.

Savings Accounts

This is a no-brainer. You will not make money if you lose money — simple.

A very low-risk way to invest is to keep your money in a boring, secure investment like a savings account.

Simple investments like CDs and money market accounts are available at banks.

You will not experience any glamor gains, but you are guaranteed to receive a meager and uninteresting rate of return.

ICOs: A Short Explanation

ICO stands for Initial Coin Offering.

With ICOs, companies issue a certain amount of tokens and get funding from investors in exchange for the tokens.

The tokens can be used to buy into the company’s products or services.

ICOs are extremely new and unregulated, so it is important to research the company you are investing in.

A lot of times, ICOs are just another way for companies to raise money for their business.

However, some ICOs are pretty innovative and have the potential to disrupt industries.

Conclusion

Although it takes a very long time to see any return, real estate can be a fantastic long-term investment.

Investing in stocks and mutual funds is much easier to do. You can buy a mutual fund that holds a sizable portfolio of stocks and bonds, or you can buy a stock fund that invests in a wide range of businesses from various industries.

Because there are so many companies to choose from, stock funds are typically easier to access, but mutual funds are typically more affordable.

You must decide which option best suits your circumstances because both have advantages and disadvantages that are different.

When investing in bonds, interest rates are currently very low and it is considered a low-risk way to invest.

Savings accounts that are boring but safe can be a very low-risk investment option.

This is a no-brainer. Keeping your money in a boring, safe investment like a savings account can be a very low-risk way to invest.

If you want to learn more about the risks involved in trading and how to manage risk, try an online trading course.

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