Lux Investing
Can you invest money without risking the Loss of what you initially invest?
I know you can risk losing your profits, but can you invest without risking your origonal money?
Public Comments
- Yes. Everbank has an investment plan like that.
- Every investment, including stuffing cash in your mattress, has some risk of loss of principal. The safest investments are government bonds (what are the odd of a national government defaulting?). Next comes money market funds and bank deposits. High grade corporate bonds are also pretty safe. After that, risk grows. Equity investments of all types are more risky than good debt investments.
- It's always a gamble, nothing is a "sure thing". Good luck!
- Inflation is continually eating away at your principle at about a 4% rate annually, sometime more infrequently less. Then on top of that there are taxes which eat away at the income your principle is hopefully producing. The bottom line is NO, you can not.
- If you want a "safe investment" you can invest your money in EE Series savings bonds or CDs. However, with this safety comes very little interest. The interest is so low in fact that inflation may eat away all of your profits. This means that your spending power could actually erode while you are investing your money. It is highly doubtful that if you invest in CDs or Savings bonds that you would lose your original investment. If you invested your money in savings bonds right now it would take almost 25 years for your money to double. With a 5% interest rate that is available on some CDs right now it would take just over 14 years for your money to double.
- Get an Treasury Inflation-Protected Securities (TIPS) or an I-Bond. Theres some differences but basically make a certain percent above the inflation rate. So if inflation is running at 5% (god forbid) you'll make like 7% or so. Usually it a percent or two (not sure exactly) above inflation rate and unless the world ends, you'll be alright.
- Yes. I know a company currently offering 25% annually in USD, EUR or GBP without risk.
