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For those who think their money is safest in savings accounts, this method is for you.
CDs are insured by the FDIC, making them as secure as cash in the bank.
Thats a level of security you just dont get with cash stashed at hom.
However, they might be safer than you think.
Although stocks are riskier, they are protected byregulations and broker safeguards, Little said.
Theyre a bit more dynamic.
Youre buying a piece of a company, and if that company grows, so does your investment.
Plus, theres the potential for dividends, which is extra money in your pocket.
And they help you stay ahead of inflation an important edge.
Right now, stocks like Enbridge Inc. pay a 6.8% trailing dividend yield.
Thats an opportunity for you to get paid even if the market is down.
Its a great way to supplement your savings.
Not all stocks are equal.
Some stocks may lose money.
Others may perform extremely well.
A diversified portfolio allows you to balance your risk.
Treasury bills, bonds and notes, according to the GOBankingRates survey.
Little said consumers need to change their minds about this and look into these avenues for investing.
U.S. Treasury bills, bonds and notes are about as safe as it gets, Little said.
Backed by the U.S. government, theyre the closest thing to a sure bet in the financial world.
If safety is your priority, these are your go-tos.
Alec Kellzi, a CPA atIRS Extension Online, agreed, saying investing in these assets are incredibly safe.
They are very simple to get when you need your money because of their liquidity.
Your money deserves to work for you, not just gather dust.
Jayasinha also agreed with Little, saying that if disaster doesnt come for your money, inflation will.
Although liquid, cash will depreciate due to inflation.
When markets thrive, liquidity is pushed towards less liquid assets, creating pricing bubbles.
When the music stops and liquidity is pulled back through rate hikes for example, those bubbles burst.
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