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Low Risk Investment Vehicles Offer Safety and Peace of Mind

Having a highly cautious spirit when approaching investing is appropriate behavior for a variety of reasons.  If you feel that investing is too much like gambling or that you are ill equipped to deal with the stress and risks involved, then safety and peace of mind are of high value for you.  Loosing sleep at night over your investments is generally a sign that your portfolio may be too risk laden for your own good.  Your personal investing strategy needs to fit your personality type.  An old maxim of investing is that the closer you are to retirement, the more conservative and income focused your portfolio should be.

Investing has become a necessity in life if you wish to retire with financial security under your belt.  Social Security will only cover 40% of your projected retirement needs, based on recent studies, and since we are also living longer, the need for additional earnings from investments is critical.  If dealing with forex brokers or other alternative investment strategies does not suit your tastes, then simple interest compounding may be all you need.  Even low risk investments can provide long-term benefits over time.

On the risk pyramid of investment vehicles, the “Base” items will be the focus of our discussion to follow:

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All of these securities, with the exception of pure cash, tend to be debt instruments of some form that pay interest at a specified rate, frequency and term unique to each form of investment.  Risk profiles are low, which justifies their lower return rates.

Safety first is always a prudent investment strategy.  Review your options with your broker to determine which ones are right for your individual financial situation.