The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: pabb007 on August 14, 2013, 01:40:42 PM
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What are ways to invest with low risk?
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Risk is directly proportionate to return, so low risk investment will have low expected returns.
If you're new to investing, read these books as a good place to start:
http://www.amazon.com/Random-Walk-Guide-Investing/dp/039332639X/ref=sr_1_3?s=books&ie=UTF8&qid=1376508625&sr=1-3
http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365
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There's no such thing as low risk. Let's say you decide to put your money in the best online savings account. Let's pretend that savings account gets 1% interest (really great for a savings account these days). If inflation averages 3%, you just lost earning power on that so-called low risk investment.
You need to decide how much risk you are comfortable with. KingCoin got it with "risk is directly proportionate to return." If you're super risk adverse and opt for savings accounts or other "low-risk investments", your money will lose earning power due to inflation.
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Thanks!