Lux Investing
How/Where do I invest money with the safest or zero risk of losing my investment?
I don't know any good ways/companies to invest with that will guarantee 100% of my my money back. Example: church, family business, etc.
Public Comments
- There is no such thing as investment without risk. Too many scams and crooked people out there now-a-days.
- There is no such thing as zero risk... the closest thing would have to be real estate.
- Treasury bills backed by the credit of the US Gov't. These short term debt instruments are "loans" issued by the government with a zero rate of loan default. In fact, all US Treasury securities (notes and bonds) are not subject to default risk. You may want to ask your bank or brokerage about these types of investments.
- Commodities, such as oil. (exxon, bp). Gold stocks, such as anglo gold. misneumatic collectable gold coins pre 1929. Hope this helps.
- Zero risk = zero reward. If you're afraid of risk, put it under the mattress.
- Treasury bills (T-bonds) that are backed by the US government. But even those are not risk free. They are the ones with the lowest risk and among the lowest returns.
- You can buy US Savings bonds at a bank that are guaranteed by the US Treasury (FDIC). You can buy US Savings bonds, also guaranteed by the full faith and credit of the Treasury, at www.treasurydirect.gov. The return may not be the highest, but these are considered among the safest investments in the world today and they do guarantee full repayment of principal and interest.
- Money market fund or the various bank cd's,money market accounts.
- Here is a good way to do it. Invest 100 $ in the following way. Put 80 $ in a money market fund. Assuming 4% interest the 80$ will grow to 100 $ in 6 years time. This is your money back guarantee. Invest the other 20$ in an Stock Index ETF. Returns in six years will vary, but you have a good chance of winning a healthy percentage and a extremely small chance of loosing more than a third in six years. This joker part of the investment will be worth between 12 $ (at worst) and 30 $ (at best) after six years.
