Low-Risk Investment Options To Consider

People who are approaching retirement would like to stretch their retirement fund as long as possible. One way to do so is by investing it low-risk instruments that can protect the principal and even earn a bit of interest as well. There are some that offer high returns but most of the options only provide a relatively lower interest rate return. But if the aim is to protect the principal amount invested, then these options are the ones to include into your plans.

High Interest Savings Accounts

If you aim to have some money deposited into something low-risk and safe in order to preserve it for future use, you might consider using High Interest Savings Accounts. They are the higher yield versions of the standard savings account. Banks offer competitive rates and usually without charging fees on such accounts. It is practically a risk-free way to keep your money for the future that also requires less effort to maintain.

Cash Value Life Insurance

This type of insurance not only will provide a payout to your beneficiaries in case of your death, it will also allow you to build value from the investment portion of the payments you make. One of its advantages is that its accrued value can be borrowed against throughout your life but it will not be taxed for income. It is a good way to protect value and pass them on to your beneficiaries without the headache of income taxes.

Consider Bank Bonuses

While it may not be a standard investment option, but you can take advantage of bank bonuses to earn some free cash. Bank bonuses are simply “rewards” that banks offer if you deposit your money with them on certain accounts on offer. Bonuses or incentives may differ from bank to bank, so does the requirements to earn them. Some banks may require you to keep your deposited amount in the bank intact from 6 to 18 months. Some may require you to use their issued debit cards for a few months. But if you have some money that you need to deposit for the future anyway, then you can take advantage of these bank bonuses. Just make sure that you also read the fine print to avoid any charges or fees along the way.

 

 

Posted by Ardent Editor on Feb 28 2018 in Retirement 101

  • Sponsors