What are the best safe investments?

Question

I'm looking for something with virtually no chance of losing my money. 10% annual interest would be fine with me. What should I do?

Answer 1

There are investments that will protect your principal from loss.  FDIC insured bank accounts, U.S. Treasury securities and money market funds that invest only in U.S. Treasury securities are examples.  But you can't get anything like this today that will pay 10%.  The only time these investments pay 10% is when we have serious inflation, and you don't want that even if you can get 10% interest.

Answer 2

There are no investments that have no chance of loosing your money.

Answer 3

You should try to find companies that have been around for a while, and have a decent dividend yield. Try some drug companies, etc... You just need to find companies that have a good history and good future. Hint, if you get a company that pays 7% dividend and has been increasing its dividend consistently, you only have to make 3% in capital to make your 10% annual interest.

Legally I cannot give you names of actual companies, but maybe someone else could help out with that, or you could do some of that research on your own.

Answer 4

It really is not realistic to earn that kind of number with no risk. If that could be done all mutual funds, pensions, etc., would move out of equity markets and into that investment, which would collapse the global stock markets as long as inflation did not exceed 10% a year.

The safest of all investments are US Treasury Bonds and US Treasury Notes. They are US Gov guaranteed, no cap on guarantee (where FDIC only guarantees 100k).  UST's are federal tax exempt (no fed tax on interest).

After that FDIC backed bank CD's under 100k would be the next safest.

Granted, the safer the investment the lower the rate of return.