A safe money investment is any investment vehicle you might use as part of your investment strategy to ensure your funds are safe and secure. Typically, though not in all cases, safe money investing involves using one of the five most safe investment vehicles. These are Bank Savings Accounts, Certificates of Deposit (CD's), Government Issued Securities, Money Market Accounts and Fixed Annuities.
Safe Money Investing
Safe Money Vehicle #1: Bank Savings Accounts
The bank savings account form of safe money investment is designed to hold money which you that you don't need to access immediately. They do present some risks to your funds, but they also pay a slightly higher rate of return than other forms of safe money investments.
Safe Money Vehicle #2: Certificates of Deposit (CD's)
Among safe money investment platforms, the Certificate of Deposit is about as safe as they come. These vehicles are usually ideal for people who want very low risk strategies for growing their investments.
Safe Money Vehicle #3: Government Issued Securities
Government issued securities are also considered "safe money investing" because they are guaranteed by the US Government. These include the Series I or the E/EE Savings Binds and Treasury bonds, notes and bills ("T-bills"). It goes without saying that investing in these securities is an extremely safe practice for safe money investing.
Safe Money Vehicle #4: Money Market Accounts
Though not as secure as most other safe money investing alternatives, the money market account is very popular as a cash management tool. Money market accounts are basically accounts where you loan or borrow money. These short-term investment vehicles always mature in under 13 months, so require annual maintenance at least.
Safe Money Vehicle #5: Fixed Annuities
Basically a contract with an insurance company, the fixed annuity is considered safe money investing because of the stability of the company you are investing in. These interest-bearing accounts are generally tax deferred, and offer limited liquidity.
These Financial Management Services are Offered by The Abbott Bennett Group LLC.
Abbott Bennett is an Independent Advisor of The Estate Plan.
All annuities are products of the insurance industry and are not backed by any bank or insured by FDIC
Our insurance products may not be available in all 50 states.
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