The Road Less Risky

Be Bold. Be cheap. Slow down.

In 2008 BLD (Before Lehman Brother’s Died) the common knowledge was that stocks would out-perform any secure high interest savings scheme over the long haul (10 years or more), but now that the Dow Jones has hit 1997 lows plunging beneath the psychological threshold of 7000pts, it might be high time for reassessment of the value of a secure investment.

Secure investments are boring. They lack the sex appeal of risk and potential for gratuitous upward spikes. They are slow and plod along like an overfed-bull migrating toward ‘the end’ with no brain in its head whatsoever. But your money is safe. If you lack the wherewithal to participate the Las Vegas, casino-style gamble of wall street, you might want to consider a safe haven for your dinero. It’s a win-win situation. It’s a slow situation. But there is virtually no volatility. There is the lowest chance of risk (unless we roll like Argentina and there is a run on the banks), so if you buy into cliché’s like, ‘It’s better to be safe than sorry’ then this one is for you:

Savings Bonds and Treasury Paper
About.com – Treasury Securities & Programs

Certificates of Deposit aka CD’s
http://banking.about.com/od/cds/a/cdbasics.htm

Good Old Bank Savings Account
http://banking.about.com/od/savings/a/savingsaccount.htm
http://home.ingdirect.com

I didn’t mention fixed annuities or money market accounts because I’m not down with investing in insurance in the current climate and investment schemes on money markets seem a bit dodge at the moment, but maybe Recessiongirl will feel more frisky in the months to come.