Are you ready to make some real money moves?

Whether you are new to investing or you’ve been investing for a while, it’s always good to research different investment options that can better fit your financial goals. Depending on your financial goals and risk tolerances, investing can be a potential avenue to build wealth because it allows your money to work for you.


Before you start investing, be sure to research your options or seek professional advice. Several investment routes, such as stocks and bonds, can be very enticing. However, you should know that investing involves risks. The two categories of investment risk factors are high-risk and low-risk investments.


If you are looking for a solid start to the investing game, low-risk investment options could be the best fit for you. The risk of losing money and gaining money is low, but it can help you ease your way into creating wealth. Below are two options for low-risk investment options.


Certificate of Deposits (CDs)

CDs are a safe investment due to them being FDIC-insured. With CDs, you can store your money for a certain amount of time, ranging from 3 months to 5 years. If you withdraw your money before the length of your CD term is finished, then your CD could be subject to an early withdrawal penalty, which could result in you losing your interest earnings. Also, inflation can be a killer for your interest-earning if your CDs rate of return doesn’t keep up with the rate of inflation.


Bonds

There are several types of bonds, such as treasury bonds, corporate bonds, municipal bonds, and individual bonds to name a few. For example, treasury bonds are United States government-issued bonds that allow consumers to purchase bonds at a fixed maturity rate, ranging from 10 to 20 years. Two risks to look out for are risks of inflation, interest rates, and liquidity. Investors must be aware that there are several risk factors when purchasing bonds.


Comment below and let us know what low-risk investments you are investing your money in?


Here are two high-risk investment options that can produce additional income.

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