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7 Safe Low-Risk Investments to Consider in 2021
While the stock market escalated in the second half of last year, it still has to pass a few more hurdles in 2021.
It may be useful to some investors to consider low-risk investments that can help ride out future volatility that may occur in the stock market ahead of 2021.
Of course with low risk means lower returns, but you can preserve a steady flow of interest income over the long run when considering low-risk investments for your portfolio.
Insured Certificates of Deposit
Since CDs are insured by the FDIC, they are considered as one the safest investments.
It’s a great way to earn interest over time as long as you agree to not withdraw your money before the maturity date.
You would earn more interest than a regular bank account however it still is low rewards than most investments.
“The low-interest rates for borrowers translate to lower APYs for money we save at a bank,” states The Penny Hoarder.
Municipal Bonds
Municipal Bonds are bonds issued by the state and local government. If you buy a bond from your state, they sometimes don’t tax them either.