No matter what stage in life you are in, investing is important. Making the right investments could be the difference between working until you’re in your 70s or having a sweet retirement once you hit 55. Investing early and often is wise, and failing to have good investment advice could mean a dangerous future.
Diversifying your investments is one of the most important things you can do as an investor, as it means you’ll have financial security. But diversifying goes far beyond just having different kinds of stocks in your portfolio; it means having different kinds of investments. Sometimes, the best low risk investments are ones that not everyone has. Check out these low risk investment ideas and see if any of them might work to bring you a more secure future.
Whole Life Insurance
Whole life insurance is a fantastic investment that not only keeps your financial future secure, but it also keeps your loved ones’ financial future secure too. Whole life insurance has premiums that never change, meaning over time the cash value of your policy grows significantly. It’s an investment that won’t be hurt if the economy tanks, because you’re locked in to your policy as long as you continue to make payments.
As the cash value of your policy increases, it will also pay you dividends. With benefits such as collateralized loans available with your policy, the financial security of a whole life insurance policy makes it a fantastic investment strategy. And since it’s so easy to compare life insurance rates, you’ll be able to find a terrific policy that will keep you financially secure throughout your life.
Utility stocks are a great low risk investment that will pay dividends that are typically 3% higher than treasury securities. Since they also usually remain stable in price, utility stocks are a great long term investment that lead to financial security.
Utility stocks do not rise and fall cyclically like other sector stocks do. No matter what stage the economy is in, there is always a need for basic utilities like gas, water, and electricity. That’s what makes investing in utility stocks such a fantastic idea. If you choose to invest in utility stocks, keep in mind that they are taxed on both capital gains and dividends.
Municipal bonds are a popular low risk investment for many reasons, one of which is that they’re exempt from federal income tax. Many state and local jurisdictions also exempt these bonds from income tax, too. Municipal bonds are a low risk investment because the likelihood that the borrower will default on the loan is very low.
If you aren’t familiar with municipal bonds, they are quite simple. When any type of government needs to borrow money for whatever reason, they issue municipal bonds. Since the bonds are backed up by the government, you usually don’t have to worry about defaulting. They’re a very easy, high reward way of investing your money.