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However, there are many popular investments that may not give you the returns that youre expecting.
What are five common investments that probably wont make you a lot of money?
Interest rates on CDs are tied to the rate on United States Treasury investments of comparable maturity range.
Investing in a CD provides you with consistent returns that are pretty much risk-free.
Why this may not be a good investment…
The rate of return on CDs is lower than rates typically available on higher-risk alternatives, stated Johnson.
CDs typically pay a rate of interest below that paid on long-term government bonds.
Johnson added, CDs are more wealth protection instruments than wealth building instruments.
Money Market Funds
A money market is a mutual fund that invests in short-term debt instruments, commented Johnson.
The term money market is applied to high quality, short-term debt instruments that mature within one year.
Johnson pointed out thatmoney market fundsarent intended to build wealth.
Some investors purchased homes to list them on short-term marketplaces to maximize profits solely.
However, the FTX collapse proved that this space wasnt regulated enough and that the lucrative returns were temporary.
Most people dont have the risk tolerance required to invest in cryptocurrency, as the fluctuations can be extreme.
While promises of lucrative returns can be enticing, investing in crypto likely wont make you any money.
Its common for those lookingfor a safeinvestment to put their funds into a T-Bill for stable returns.
You could find a better investment option if you search around or work with a financial advisor.
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