Wednesday, March 4, 2009

How to Invest Money Safely

Here are some ways to invest safely:
  1. Invest in Treasury Bonds. Treasury bonds are backed by the Federal Government and safe from adverse market movements. Profit on Treasury Bonds is fixed. Treasury Bonds are bought at face value and upon completion of the maturity period you receive the profit. For example you may buy a Treasury Bond at $1000 for a 10 year period which will pay you regular profit every half yearly till the maturity period, ie. 10 years. 
  2. Invest in Health Care Stocks. The Health Care Sector is very stable and growing at a good rate. The dividend payout is good and this sector has a projection to grow by leaps and bounds in the coming 10 years. There will be huge money pumped in this sector and the health care industry will see lot of technological changes. One good stock from this sector is Abbott Laboratories.
  3. Invest in Stocks with High Dividend Payout. Stick with blue chip stocks which have a good dividend payout history and pay high dividend. Example of such stocks are Energy and stable Technology stocks. 
  4. Buy Gold. Gold is a physical asset and is a good source to fall back on in times of economic adversity. The value of gold always rises and it can be used in lieu of any currency as it is recognised as a sought after commodity in the world market. You can invest in gold indirectly by buying Exchange Traded Funds (ETF) in gold. Donot trade in gold futures as they tend to be volatile. 

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