Safe investments that will keep you financially secure this year

When you finally decide to put your savings on sound investments, it might be tempting to look for other investments that will give huge returns in a short amount of time. Unfortunately, this might not be wise, as most investments don’t turn out as promising as they seem. Michelle Marquez, aspiring CPA, shares some useful tips on which investments you can put your money on.

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Money market mutual funds. This open-ended mutual fund invests in short-term debt securities, like the US Treasury bills and commercial paper. This is generally a safe investment because they provide a higher yield while being liquid and short-term.

Fixed annuities. A fixed annuity is a contract with an insurance company. In order to invest on annuities, you will have to give the insurance company some money to manage. In exchange, they will pay you a guaranteed return, with the interest usually tax-deferred.

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Certificates of deposit. Also known as CD’s, certificate deposits are issued by banks. They offer high interests compared to a savings account, and they have specific maturity dates that range from several weeks to years, explains Michelle Marquez. Because they are referred to as “time deposits,” you cannot withdraw your investment for a specified period without having to pay for a penalty. Still, this is considered one of the safest, low-risk investments you can make.

My name is Michelle Marquez, and I’ve always found my way around numbers. I’m currently at UCLA studying accounting. My goal is to help others have all the right information whenever they need to make a financial decision. For more articles like this, visit this page.