What is a safe investment with a reasonable return? Is a fi
by Guest » Mon Jan 18, 2010 08:41 pm
What is a safe investment in today's economy. Is a fixed or fixed indexed annuity a good idea?
Total Comments: 3
Posted: Tue Jan 19, 2010 03:11 am Post Subject:
Jeeez, that's a huge question. "safe" is a subjective term and depends on your level of risk aversion. If you want to go really safe, Govt bonds are probably the safest, but also lowest return.
As a rule of thumb, the higher the return, the higher the risk.
Posted: Tue Jan 19, 2010 02:01 pm Post Subject:
As a rule of thumb, the higher the return, the higher the risk.
Careful, this only holds true to a certain degree. Once we get past the level of risk associated with the average of mid cap stocks we see the risk return relationship begin to head in the other direction.
The Treynor Ratio has told us for years that the highest risk adjusted rate of return is found inside participating Whole Life insurance; bare in mind this is not a short term savings plan.
Posted: Fri Jan 22, 2010 11:38 am Post Subject: Safe investment
It is hard to say which is the safest investment as it is a matter of personal choice. It also depends on the amount of risk one is ready to take. However, investing in treasuries is safe as one gets back the principal and the interest easily.
Fixed indexed annuity is good if there is a steady guaranteed income might not seem so alluring when one at a profitable stock market.
Posted: Tue Jan 19, 2010 03:11 am Post Subject:
Jeeez, that's a huge question. "safe" is a subjective term and depends on your level of risk aversion. If you want to go really safe, Govt bonds are probably the safest, but also lowest return.
As a rule of thumb, the higher the return, the higher the risk.
Posted: Tue Jan 19, 2010 02:01 pm Post Subject:
As a rule of thumb, the higher the return, the higher the risk.
Careful, this only holds true to a certain degree. Once we get past the level of risk associated with the average of mid cap stocks we see the risk return relationship begin to head in the other direction.
The Treynor Ratio has told us for years that the highest risk adjusted rate of return is found inside participating Whole Life insurance; bare in mind this is not a short term savings plan.
Posted: Fri Jan 22, 2010 11:38 am Post Subject: Safe investment
It is hard to say which is the safest investment as it is a matter of personal choice. It also depends on the amount of risk one is ready to take. However, investing in treasuries is safe as one gets back the principal and the interest easily.
Fixed indexed annuity is good if there is a steady guaranteed income might not seem so alluring when one at a profitable stock market.
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