LOWEST RISK INVESTMENTS! 📈 Top 5 Low Risk Investment Strategies #Best Education Page #Online Earning

how's it goin today guys it's a little

bit after nine o'clock I've had my 8:30

latte so I am ready to go with this

video anyway today we're going to be

talking about the lowest risk

investments that there are out there so

I recently did a video on the highest

risk investments that you could possibly

have for making basically investor money

in and I thought it would be interesting

to in contrast look at what the lowest

risk investments are now honestly other

than maybe certificate of deposit I

really don't recommend these as

investment simply because the return on

these is so low and even with something

like a mutual fund or just some of the

very very low risk investment but not

the lowest risk investments you can get

much better returns but anyways let's

just get right into it so these are what

I see at the five lowest risk

investments out there they're really in

no particular order here these are just

five very low risk investments anyways

number one is a certificate of deposit

and like I said this might be one that I

might recommend to you and this is

basically the scenario that this would

be maybe you're somebody who is looking

to buy a house and you have some money

saved up and you know you're not going

to buy a house for maybe five years

let's say you have $10,000 sitting

around rather than leave that money in

your checking account where you're

earning a very very small rate of return

I would recommend opening up a

certificate of deposit and just kind of

putting that money in there where you're

going to at least forget some kind of

return it's not going to be a lot it's

going to be a very small amount but it's

still at least better than what you're

getting from that checking account so

rather than have your money sit in your

checking account for five years or your

savings account I would recommend a

certificate of deposit in that scenario

but other than that I really don't

recommend this as an investment simply

because the returns are so low obviously

if this is money for like the down

payment on a house you don't want to be

risking that money to the point where

maybe five years down the road you're

ready to buy and you're down on your

investment so that's where I would maybe

recommend a certificate of deposit at

that situation but anyway a CD is the

safest and most boring investment that

exists that there's really nothing to it

you can get them through your bank or

through your broker and basically with a

CD you deposit the money for a specified

length of time for a guaranteed rate

return that's basically it if you take

the money out early there is usually a

penalty and it's usually some amount of

interest that you've earned back so

maybe like the last three months of

interest or whatever there's some kind

of penalty that they'll have on there so

if you draw early they may take some

amount of interest back from what they

would have given you on that but if you

basically let it sit there until

maturity then you will just basically

get that amount of money plus that

amount of interest that they have

promised to you this is a fixed interest

rate that does not change and as long as

you're getting a CD that is through a

bank that is FDIC insured that you are

you as a borrower are then FDIC insured

for up to $250,000 on principle so as

long as you have less or equal to

$250,000 in that CD your guarantee and

you're insured for $250,000 and you

can't lose any of the principle so that

is why that I steps basically yit a CD

as the lowest risk investment out there

and it may be equal to bonds municipal

bonds and US savings bonds but they're

all kind of of the same tier of ultra

low risk and very very very low return

number two is what's called tips or

Treasury inflation-protected securities

these are basically bonds that have two

methods of growth first of all you have

a fixed interest rate that does not

change so this is just a constant but

the second piece of this is a guaranteed

inflation protection where interest

rises with the rate of inflation so for

example you might have it tips that pays

zero point three five percent as that

fixed rate but let's say inflation over

that time period is averaging at two

percent that's basically like getting a

two point three five percent return

because you're getting a rate of

inflation Plus that very small rate of

return that's just that fixed interest

rate the only way that you can lose

money on this is that we're in a period

of deflation at that point if the

deflation rate exceeds what that fixed

interest rate is you could lose money on

this form of investments basically tips

can be purchased individually or through

a mutual fund that will expose you to

multiple different bonds again very very

simple very safe investment not a lot to

it guys either that's kind of things

that you just said it

forget it this isn't the kind of thing

where it's going to be an active

investment

number three is one that people may

argue with me on its peer-to-peer

lending and basically the argument is

okay yeah if you make a really stupid

loan and you give it to somebody and you

don't screen your borrowers yet this

could be a high-risk investment but as

long as you're screening your potential

borrowers this is a very low-risk

investment and I would say you could

probably get a decent return from this

probably a lot better than what you

would get from a CD or one of these

Treasury inflation-protected scarier

bonds basically with this you're lending

your money to someone else and they're

going to pay you back the principal plus

interest if you screen your loans and

choose the best rated borrowers this is

a very low-risk investment however if

you do not screen your loans this can be

a very high-risk investment so just for

an example Lending Club is one of the

biggest sites out there that facilitates

this peer-to-peer lending and they have

a default rate of 5% so that means that

95% of the borrower's are good and pay

back that money plus that interest so as

long as you can pick out the best people

and you're not falling in those five

percent who default then you should get

your money back and get a nice little

rate of return and some of these sites

allow for micro loans as small as

twenty-five dollars so not a whole lot

of risk involved there and not a ton of

return but probably better than what you

would see with some of these other

investment vehicles here number four is

a money market fund and basically this

is a type of mutual fund characterized

as having low risk and low returns or

basically just a place to park cash this

is not somewhere that you're putting

your money as an investment this is a

place to basically put your money in

between investing it so maybe you have

concerns about the market and you just

want to take your money out and put it

in cash and earn a very small rate of a

turn you might do a CD or money market

fund the advantage of the money market

fund is you can get your money out of it

without having to pay a penalty of any

time because you're not locked in for a

time period but basically this is a fund

that includes a portfolio of low risk

high quality investments now don't

mistake high quality investments as

something that give you a high return in

general the higher quality of the

investment is the lower return is going

to be because there's not a lot of risk

associated with that

you're going to get a very low rate of

return the goal of a money market fund

is not to lose any principle and the

idea is to keep the net asset value at

$1 per share at all costs these are like

I said up meant to be a place to park

cash not necessarily a long term

investments then number five is my fifth

very low-risk investments this would be

muon municipal or US savings bonds

so basically when a government at the

state or local level needs to borrow

money they don't go out there and get a

credit card

they basically issue a municipal bonds

and municipal bonds are exempt from

federal income tax and many states

exempt them from state taxes as well so

many people like these investments for

that reason alone and it makes sense for

these to be tax exempt because we're

basically investing money into our own

governments so it is a it's to our

benefit to have people investing in this

so it makes sense that these are exempt

from taxes in many cases so this is a

smart investment for those who are

looking to minimize their exposure to

taxes but other than that I really don't

recommend these as an investment unless

you're looking for something that's very

very low risk now this type of

investment is very low risk because the

likelihood of the borrower defaulting

other obligations is extremely low it

has happened in the past but it is very

very unlikely that a municipal

government will default on their

obligations and not be able to pay back

the bond then we have US savings bonds

and these are backed by the federal

government the interest rate on US

savings bonds is very low however it is

worth mentioning that if you have a

series double e bond you're guaranteed

basically to have that double in value

over the course of 20 years so let's say

if you had a bond that was going to be

worth $100 and you pay $50 for it if you

held that to maturity for 20 years and

it was a series double e that would be

worth $100 20 years later and if you

average that out over those 20 years as

an average three point five percent

return per year not a terrible return

but obviously you can do better very

easily in most cases in good markets

with other investment vehicles but

anyway guys that's pretty much all I got

for this video this is more of just a

curiosity piece this wasn't necessarily

things that I would recommend

- you guys invest in unless you're

looking for very low-risk investments

anyway guys if you enjoyed this video

please drop a like and then consider

subscribing to be notified of any future

uploads and as always I thank you guys

for watching this video

#Best Education Page #Online Earning

online earning,make money online, earn money online, online earning, online earning sites,

 make money online free, online money income, earn money online free, money online, best way to earn money online, online income site, money earning websites, best online earning sites, easiest way to earn money online, earn money payment bkash, online money income site