Every investor out there would want to have higher returns for their investment even in Forex trading. The statement, “The higher the return of investment, the better” is actually a misconception. There are still a lot of factors to consider. For some investment professionals, the actual point of conversation boils down to the “risk-adjusted return”. This idea suggests that not all returns are actually created equal and the value of risk is very important, even if it means much lower returns.
But several investments are considered safe and have high returns. These investments generate a steady income to keep your family secure at all times.
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High-Yield Savings Account
This investment works well if you are looking for an investment option that’s free from risks. The high-yield savings account offers strong returns and overall safe investment. The money you invest here is FDIC-insured which means that the government will compensate you in losses obtained up to $250,000. Your money is 100% safe and 2% returns are given to all savings accounts.
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Certificates of Deposit
Investors who want to avoid risks can check these Certificates of Deposit. This is similar to a savings account and is FDIC-insured, making it 100% risk-free. The only difference between savings accounts and certificates of deposit is the liquidity, just like in Forex Trading. But totally, it has higher returns compared to other savings accounts.
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Money Market Accounts
If you are using money infrequently then Money Market Accounts work best for you. Similar to Certificates of Deposit, Money Markets also offers higher returns than some savings accounts. This could also offer a great deal if you are making deposits every month or writing rent checks. This is also FDIC-insured with a limit of $250,000.
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Treasuries
If you have this kind of money that you won’t need until the maturity of the bond, then you must invest in Treasuries. Investors who are also willing to give up some flexibility for better returns are also welcome here. Take note that the debt released by the Treasury is fully backed by the U.S. government, which makes them secured just like the FDIC-insured savings accounts.
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Treasury Inflation-Protected Securities
Investors who are willing to wait for their money until the maturity date can invest in the Treasure Inflation-Protected Securities. Inflation is the only option, compared to the previous investment options. It has low yields and the principal investment will increase or decrease based on the inflation rates.
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Municipal Bonds
Municipal bonds are riskier if you are seeking for marginally better ROI but this offers real-safe bonds.
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Corporate Bonds
Usually a bit riskier but definitely offers higher interest. It is riskier than munis and treasuries but safer than any blue-chip public companies.
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S&P 500 Index Fund/ETF
Investors looking for long-term investments will love the S&P 500 Index Fund/ETF. You can avoid most of the risks and enjoy higher returns compared to bonds.
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Dividend Stocks
Another long-term investment that can produce good returns, dividend stocks lets its investors create regular income. This provides steady returns, whether the market goes up or down.
