High Yield Safe Investments

High Yield Safe Investments are out there but they take a bit of due diligence to find. Read our reviews and make educated decisions based on rate of return and risk.

How to Find High-Yield Safe Investments that Can’t Lose

Let’s face it: Putting money in high-risk, potentially volatile investments is more than a little bit exhilarating. Especially when you’re young or financially secure enough to be able to absorb some of that risk, there’s a real allure to those potentially huge investments that most people simply stay away from out of habit. Of course, while all of this may be true, you may have noticed a slightly different attitude setting in among investors in recent years, and maybe you’ve felt the change yourself. While there is still a place in every good portfolio for a small percentage of high-risk investments, most people have been shocked by the volatility of the markets over the last two years and are thus looking for safer bets.

Safety without sacrificing returns

But the fact is that wanting secure investments doesn’t automatically rule out potentially high yields. There are high-yield safe investments out there if you know where to look and if you’re willing to let your profits unfold over time. Of course, the profits that you get from safe investments are probably never going to be as big as those promised from those high-risk securities of a few years ago, but times have changed, and we’re all realizing that the fast-and-loose days of yore are dead and gone. Today, we err on the side of safety.

When it comes to high-yield safe investments, the first rule is to diversify. Of course, smart investors diversify in all aspects of their portfolio, but I’ve found that this is a point that needs to be driven home again and again, especially when it comes to young, adventurous investors. Placing all your eggs in one basket is a recipe for catastrophe. Fortunately, there are enough different kinds of high-yield safe investments to make diversification a relatively easy task if you’re willing to do the groundwork and perform the due research.

Types of high-yield safe investments

Possibly the safest types of high-yield investments are those that are either FDIC insured or take the form of government bonds. When it comes to bonds, U.S. government bonds and municipal bonds are still a good idea. The interest rates may not be what they once were, but you should be able to find some that outpace inflation if you look hard enough. Also, don’t forget to look into the current best deals offered by banks. There are currently a few banks offering online savings accounts with interest rates of 2% or more. This may not qualify as “high-yield” exactly, but it is nothing to sneeze at, and it’s a good thing to do with at least a small portion of your portfolio.

Outside of those very safe bets, there are also plenty of mutual funds, money market funds, and bond funds that promise to return fantastic yields as the economy recovers in the coming years. Meanwhile, you can’t go wrong with buying stock in companies that are well known for their stability and proven business models. Large utilities, tech companies, and popular product manufacturers are good places to start.