Looking for safe investments

With the volatility of the past year and increasing uncertainty of the future economy, an increasing number of people are focusing on safe investments.

If you are, what are my options? Several financial vehicles exist as an alternative to securities. These are:

Government Treasuries-widely regarded as the safest place in the world for cash parking, u.s. Treasury securities meet two requirements. Investors need a solid place to put the money, and the Government needs cash to spend. Win-Win right? As an investor, yields are typically lower than you’ve ever found, but that is the trade-off for the level of security offered.

Bonds-the company is required to fund operations, as well as and bonds are the safest way to invest in the corporate world. Bondholders are the first to be paid in the event of the insolvency of the company. If this happens, the titles may not be redeemed in full value, but is better than the alternative of having a title that drops to $ 0.

CDs-it is simply a step-up from a savings account at a local bank. An investor agrees to block money for a certain period of time. In Exchange for the loss of liquidity, the interest rate paid is a bit higher and deposits fall under the banner of FDIC coverage.

Pensions-pensions are generally preferred by investors nearing retirement. Annuities at their most basic level, the exchange of cash today for tomorrow’s income, but there are thousands of different ways package company this assumption. Do your homework and not be sold until you get some Straight Talk!

Annuities have some advantages over Treasuries and CDs for people looking for safe investments. Annuities can be used for cash accumulation, as well as ensuring a long-term stream of retirement income. Useful in an annuity that can also grow tax deferred. Finally, the return on your investment in a contract of annuity are based on the performance of the investment portfolio of an insurance company. With solid businesses, have some of the best investment managers in the world sure managing your money, and in addition you have a very high rating ensure income long into the future.

Insurance companies own large blocks of corporate bonds so that the return will mirror the performance of securities, less the operating costs of the company. The safety of products revenue comes from company reserves that are used for projects yields stable and guaranteed minimum interest rates. Also, because pensions are regulated insurance products, guarantee funds of the State of each new contract a specific limit for the State where you live

Each of these safe investments has its place depending on the needs and investment objectives of each individual investor. But for the right people, annuities are superior to the other safe investments. Here’s why:

Treasuries-an annuity is backed by reserves of the issuing insurance company, which operates in the field of the protection and the growing business. The Government of the United States seems to be in the business of print and spend money and piling on debt. The failure of this system would have catastrophic consequences at global level, but can be run headlong to reality at this time. It is prudent to hedge your bets and invest with professionals.

Bond annuity rates are based on a bond portfolio, but they have guaranteed minimum and default protection by the enormous reserves that companies must lead. Pensions are simply a way safer than bonds.

CDs-certificates of deposit have one advantage over pensions: a CD is more liquid, so that the money invested can be refunded in full within a period of time than with income. In addition, an annuity grows tax-deferred and the rate of return is usually double CD. For an investor looking for a safe investment for five years or more, easily overcome revenue CDs in all performance categories.

Each of these points deserve more explanation which is AnnuityStraightTalk.com but this covers the basics that every investor needs to know to be able to decide if an annuity makes sense.

In taking a final decision, a competent advice is highly recommended. That presents a unique set of questions and challenges. Educate yourself allows you to screen the advice you get and make a decision regarding your financial future.