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Any Investments You Can't Lose Money In?

Discussion in 'Investments to Grow Your Business' started by Alaine, Mar 20, 2016.

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  1. Alaine

    Alaine Member

    Most investments involve some risk. There's a possibility that you could all or some of your money. That's why those who aren't willing to take risks prefer to leave their money in their bank accounts and let chip away at their savings. I don't want to be one of those people anymore.

    So here's my question, are there are "safe" investments for people like me who are terrified of losing their money? Investments that guarantee some returns every year?
  2. Nancy

    Nancy Member

    No investment is going to be 100% safe. It is the nature of investing. You could put your money in savings at an insured bank and get maybe 1/2% return and be safe.:(

    I suggest investing for the long term in a few well established mutual funds. They are pretty safe and you can find some that return 12% or more over 10+ years. They may lose money some years, but if you ride it out, the returns will be good over the long run. If you do not have a lot of investment experience, it would be a good idea to find and use a trusted financial adviser until you gain experience. Ask friends and family for references.
    Alaine and Valerie like this.
  3. 111kg

    111kg Member

    Bonds are a relatively ok investment. However, the general rule is that the smaller the risk, the smaller the returns. One thing that I am expecting is another world crisis so I can go all in in index funds. They were insanely good investments when the market hit the bottom, honestly.
    Alaine likes this.
  4. Valerie

    Valerie Member

    You could always do what my grandmother did. She put a bunch of money in CDs and hid the rest inside her mattress. Now she's a millionaire.

    And it only took 80 years.

    Bonds are all right, as someone already mentioned, but the rate of return is small. Not as small as CDs though.
    Ladyferoz and Alaine like this.
  5. Nancy

    Nancy Member

    I haven't checked lately, but bonds are not the investment they used to be. For a while recently their interest rate was in the negative! Meaning you would lose money to own a bond!! I imagine CD's are the same. At this time, interest rates are so low that you wouldn't make much, if anything, in these types of investments. If you were able to hold on to them for many, many years you may be OK.
  6. Lynda

    Lynda Member

    It is very difficult to find an investment without some degree of risk. In general the better the return, the higher the risk is a very good rule of thumb.

    The only thing I can think of that is close is inflation-protected savings bonds. Up until recently, if you were in the UK you could get index-linked savings certificates with an interest rate of CPI+0.05%. It was a slow rate of return, but it was guaranteed to beat the inflation rate. Unfortunately it was pulled recently, so you can only get them now if you already have them. In the US, there are still Treasury inflation-protected securities available, which pay out the principal + (interest rate + CPI) and have protection in case of deflation. There are details here (Individual - TIPS: FAQs), but I'm afraid I know nothing else about them.
    Alaine likes this.
  7. T J Tutor

    T J Tutor Member

    Opus, azgold and Nancy like this.
  8. Biju

    Biju Member

    Every investment comes with a risk. Any bizarre thing can happen at any point in time. All you can do is make decisions that have the least amount of risk. The best investments are long term investments. Mutual bonds are a good example of this.
  9. remnant

    remnant Member

    No investments are 100% foolproof from risk. But yes, there are some whose probability of risk is on the lower percentile. A good example is Real Estate Investment Trusts. If you want to invest in the real estate industry and you don't have money, you can invest in REITS through mortgages and properties. REITS offer investors high yields and are a highly liquid method of investing in real estate. Their performance depends on the value of the assets they represent. REITS are less volatile and offer some degree of protection against inflation.
  10. jona

    jona Member

    The only money that you will never lose is the money that you invest in your education. Nobody is ever going to be able to take that away from you, I am talking about your degrees, certifications and even the knowledge itself other than that, the risk of losing the money if an inherent property of investing it, if anything, be very aware of people that offer you a steady capital increase with absolutely no risk, because that has all the characteristics of a ponzi scheme.
    arthnel likes this.
  11. Ladyferoz

    Ladyferoz Member

    At least, she put it in cd cases, there have been a few stories of Chinese people who bury all their life savings only to dig it up ruined.
    "According to Mr. Zhang, more than four years ago, his mom wrapped the stacks of banknotes in a plastic bag and stored them in an iron box before deciding to keep them under the floor of her kitchen.
    This past April, when Mr. Zhang was getting married, his mother finally remembered about the 100,000RMB she'd left buried underground.
    She hurried to dig up the money, hoping to provide a beautiful wedding for her son. But to her surprise, the money had essentially turned to mush and crumbled when she touched it.
    Mr. Zhang sought help at the local Bank of China location. A damaged banknote appraiser surnamed Lin told him that based on the current exchange rate, he was not going to get 100,000RMB for his mash of money. After taking pictures of the banknotes, Lin said that he would help Mr. Zhang contact the bank in Nanjing for further evaluation.
    scrapmoney-2.jpg scrapmoney-1.jpg
    With that being said, no there are no safe investments.
  12. Corazon

    Corazon Member

    When you say investment, that means business where you put your money to earn. I think the safest investment I can think of is real estate, particularly lots for housing. That is my plan when I retire from my job. I would invest the retirement pay I would receive in buying a lot or 2 for a possible house or apartment to be rented out. At least the value of real estate here is stable so I can say it is somehow safe unless there is a recession. But I also intent to leave some money for a small business that I would probably venture on.... retail of ready-to-wear clothing items.
  13. pwarbi

    pwarbi Member

    As everyone as already said, I also don't think that any investment is going to be 100% safe, no matter how careful you are in choosing them.

    Your safest bet is to focus on yourself and if you own your own business then you can invest time and money in developing that, and that will never go to waste, but I don't think that's the kind of investment the OP was looking for?
  14. ruener79

    ruener79 Member

    Everyone has said it. There's no 100% safe investment. Volatility is the very nature of investments. The least that can be done to avoid said volatility is to stay invested in the long term (minimum of 5 years) to ride out market changes. That said, and considering that you're not familiar with different investment instruments, I first suggest that you study. Look into things such as mutual funds. There are many financial institutions that offer these products. Also, before you find a product you'll be given a questionnaire to check your investment profile and your investment goals. You'll be classified either as a risk taker, a moderate risk taker, or a conservative. Whatever your risk/investment profile, there is a corresponding MF product that will suit you;
    risk taker - equity fund (exposure to stocks), moderate - balanced fund (part stocks, part bonds etc.,) conservative - (tds??, etc.)
  15. Isaac Kieffer

    Isaac Kieffer Member

    I personally think the safest investment you can do would be investing in something that you are an expert in. Everyone has their niche and if you can find a way to invest in your own niche whatever is may be, you should have the knowledge in the field to know when things are going south.

    If you don't have a particular niche that you can invest in and feel safe about, then its time to invest in yourself! Go take classes, read books, and learn so much about one field that you are a master at it. Then you will feel safe about investing in that field!

    I am in real estate and many people feel concerned about investing in real estate because of the great 2008 drop in the market. I have studied the market and have a pretty good feel for it. If I saw the same trends then (predatory lending, ect...) I would liquidate my investments and change up my investment options. The thing with investing is whether its a good or bad market, you can make money doing the right thing! Most investors in 2008 bought foreclosed, fixed them, and rented them out and are now seeing ROI's of 100%! Think about that with any other kind of investments.

    The stock market drops ALL the time!! But people are still making tons of money off it? Want to know how? 1 word... MARKET KNOWLEDGE. more you learn the more you earn!
  16. terryse

    terryse Member

    There is always some elements of risks in any investment. The safest is to diversify and don't put all your money in one basket, as the saying goes. Also, start small and don't go for investments where you have no knowledge of.
  17. azgold

    azgold Moderator MVP Member

    I was told by a financial advisor once, that bonds are the lowest risk investment. That being said, they are also usually slow growing and low interest.

    Higher return usually means higher risk.
    pwarbi likes this.
  18. Spirit

    Spirit Member

    There are always going to be places that you can put your money - but don't expect much in the way of returns. Term deposits will give you a return, but very little reward in this low interest rate environment. That's the nature of it. If there were easily available safe high return investments for all of us to invest in, we'd all be doing it.
  19. pwarbi

    pwarbi Member

    I think that's absolutely right, and the bigger the reward, the bigger the risk is usually how it works. If you want a slow and laborious long term gain then bonds are as risk free as it gets, but that being said, it all depends on just how long your prepared to wait.
  20. remnant

    remnant Member

    There are also company bonds especially those from good performing companies since they provide a guaranteed return which is of appreciable value biannually. You can't also go wrong with treasury bills which are a form of bonds issued by governments. A more traditional investment that carries practically zero risk is the fixed deposit account. One needs a larger sum of money with respect to this.

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