Investments with Guaranteed Returns

When investing, it is vital that you diversify your portfolio so that you have money in various places. This is important so that you do not lose it all if one part of the investment strategy goes wrong. One of the most important parts of this diversification is putting some money into risk free investments with guaranteed returns. Investments with guaranteed income simply give you the benefit of knowing that there will be money made on the investment, no matter what is going on with the overall market. While you will see smaller returns on these types of investments with guaranteed returns, you will never have to worry about losing the money. To this end, here are some of the most common choices that you can rest easy with.

  1. Basic Savings: Although the return rate is not very big, investing your money into a regular savings account will guarantee that you make some money. This is one of the many investments with compound interest that you can put to use for you. While the interest rate that your account enjoys may fluctuate over time, you will never lose the amount that you invest and you will always gain some level of interest on the balance. These accounts are totally safe, but they do not provide anything close to the level of growth that some more risky choices provide.
  2. CDs: Certificates of deposit offer guaranteed income after a certain amount of time. When you purchase these types of investments with guaranteed returns, you will get information on terms and APRs that will apply for the duration of the deposit. While you will not have access to your money while it is tied up in these certificates, they do come in short term options such as two years to ten years. In the end, you are guaranteed the return on the original investment.
  3. Savings Bonds: Government sponsored certificates can be purchased for a certain amount, and when they mature, they can be worth twice the purchase price or more depending on the bond that you choose to purchase. Again, you will have no access to the money that you originally invest in these bonds while they are maturing, but you are guaranteed the return on the amount that you invested in the first place. You can, however, turn them in before they mature for a lesser amount should you need to.
  4. Real Estate: While the market is volatile, housing is something that will get you a guaranteed return if you are careful. Owning homes and renting them out is a great way to build residual income, and at some point you will see the mortgage paid while you are still collecting rent. Housing can be tricky, however, as there are things that you will have to take care of and repair when you are an owner. Still, housing and real estate offer safe investments because everyone, in the end, needs a place to live.

Everyone who invests their money wants to know that they will get a return on what they invest. While other forms of investing provide higher returns, making sure that some of these investments with guaranteed returns are in your portfolio can make the overall process just a little bit less stressful. Keep these options in mind when you are building your financial plan and when you are ready to put your money to work for you.

{ 0 comments }