Some Low-Risk Investment Options


Bonds are an extremely stable means of investing with a guaranteed return within a set period of time. You are able to invest based on exactly how much you would like to get back, and designate a fixed time period to be invested in the bond, most commonly one year, two years, five years, and so forth. Common types of bonds include municipal bonds and corporate bonds. If you use index funds to invest in bonds however, you do assume duration risk.


Certificates of Deposits (CDs)

CDs are very stable and low-risk investments in that they have a fixed maturity date and a specified interest rate. Therefore they are easy to predict and a steady way of attaining profit. They are issued by commercial banks and are an investment in the bank in that after you deposit money, you can not access it for the prescribed period of time.


Real Estate Investment Trusts (REITs)

REITs were established by the United States Congress, and give people the chance to invest in the production and purchase of real estate without actually buying a property. They pay out in dividends, and most pay out 100 percent of their taxable income.


Some Riskier Investment Options

Property Rentals

Renting out a house or apartment building is definitely a big investment to make, but can, in turn, yield large payouts. Of course, when the whole endeavor is established, and you find a tenant, you will have a relatively steady income from this on a dependable month by month basis. Now with the prominence of Airbnb, however, you may not even need to buy a new property to do this. Renting out a spare bedroom through this function is also an excellent and steadfast way to start.


Peer-to-Peer Lending

This style of lending enables investors to act as a bank in that they loan money to others through a lending platform, and they are expected to pay you back with interest at a later date. Of course, there are associated risks with this in that you are depending on someone without a necessarily reliable credit score to reimburse you.


Dividend Yielding Stocks

There is an excess of companies that you can invest in which pay out profits to their shareholders each quarter. These are usually reliable and predictable to an extent but have a high earning potential if you take the time to research which stocks you would like to invest in.