Home
Log in / Sign Up
    Private Messages   Advanced Search   Rules   New User Guide   FAQ   Advertise   Contact Us  
Forum -> Household Management -> Finances
Risk free investing?



Post new topic   Reply to topic View latest: 24h 48h 72h

amother
OP


 

Post Thu, Jul 21 2022, 9:06 am
is there such a thing?
I have a small amount of money I want to save/grow but can't afford to lose anything.
What are my best options? I'm in Israel if that changes anything.
Back to top

doctorima




 
 
    
 

Post Thu, Jul 21 2022, 9:51 am
If you literally can't afford any risk of it going down whatsoever for any period of time, then investing is not for you. Find the highest paying FDIC insured money market or CD for whatever period you can lock it up.
Back to top

1ofbillions




 
 
    
 

Post Thu, Jul 21 2022, 10:01 am
Marcus by Goldman Sachs is an online bank that currently has a 1.2% APY for its savings accounts if you don’t want to lock your money in to a CD.
Back to top

amother
Lily


 

Post Thu, Jul 21 2022, 10:54 am
You can also invest in stable dividend stocks like Coca-cola (NYSE:KO) or Kimberly-Clark (NYSE:KMB) that provide passive income with high dividend yields.
Back to top

amother
Slateblue


 

Post Thu, Jul 21 2022, 10:58 am
amother [ Lily ] wrote:
You can also invest in stable dividend stocks like Coca-cola (NYSE:KO) or Kimberly-Clark (NYSE:KMB) that provide passive income with high dividend yields.

Single stocks are extremely volatile and not recommended for someone that can't afford to lose it or will get spooked when it goes down in value. It may be a solid investment for some but not for OP
Back to top

amother
Lily


 

Post Thu, Jul 21 2022, 11:01 am
Coca Cola is as safe as you can get. And she shouldn't invest in one stock, but she can put some money in a stable stock. Coca Cola isn't going anywhere.
Back to top

self-actualization




 
 
    
 

Post Thu, Jul 21 2022, 11:24 am
No Coca Cola.

Lowest risk: CD, money market
Next level (still low risk): mutual fund or index fund that tracks the S&P 500. But it’s going to go up and down with the economy and hopefully keep pace with inflation.

You want to make sure your money grows at least as much as inflation. I think there are some government bonds/ treasury products (TIPS) that exactly grow with inflation but I don’t have personal experience with them.

Also diversity is good - like split it up into 3 different investments. That way even one goes down a bit you still have the other 2 that are going up so you’ll feel okay.

Major no no’s include: any single name stock, any bitcoin, any real estate investment that your brother in law is involved in, “hard money” or “peer to peer lending”, any other start up or private equity that isn’t liquid or publicly traded where you could get your money out easily.

Basically - if it sounds too good to be true, it probably is.
Back to top

Amarante




 
 
    
 

Post Thu, Jul 21 2022, 12:31 pm
amother [ Lily ] wrote:
Coca Cola is as safe as you can get. And she shouldn't invest in one stock, but she can put some money in a stable stock. Coca Cola isn't going anywhere.


In the long run Coke stock is safe but that doesn't mean that it is a "safe" investment for a small investor.

In general a small investor doesn't purchase a single stock however "safe" that company is.

This is because a prudent investment strategy is to have a diversified portfolio. Unless your portfolio is large, it would not be possible to have a diversified portfolio by having a major percentage of it be invested in a single stock. That is why people get mutual funds and even with mutual funds you get diversified mutual funds so that they cover different market segments - foreign vs. domestic; large cap; different industries; blue chip etc,

A "safe" investment depends on what your plans are for the money.

You need at least six months of your living expenses in a safe liquid investment. That means some form of FDIC insured account. You need it to be there and safe for an emergency and so you aren't interested in growth.

Once you have that amount of savings, what are your goals? Long term you can't go wrong by investing in a low cost stock index fund of the kind offered by Vanguard of Fidelity. You put in a certain amount each month and then forget about it. You don't worry if it is down or up because the point is that it will be up in 20 or 30 years.


Last edited by Amarante on Thu, Jul 21 2022, 4:22 pm; edited 1 time in total
Back to top

amother
Slateblue


 

Post Thu, Jul 21 2022, 2:15 pm
amother [ Lily ] wrote:
Coca Cola is as safe as you can get. And she shouldn't invest in one stock, but she can put some money in a stable stock. Coca Cola isn't going anywhere.

On June 7th coke closed at $635, it is currently trading at $495 that's down 22%. OP asked for something safe not something that just went down 22% in 7 weeks.
Now you want to argue if investing in Coke for an expirenced investor is a good idea? Thats a different question. Please don't advise people to go into single stocks when they ask for something safe and say they can't afford to lose it (which likely means they will sell the minute they see it going down).
Back to top

amother
Daisy


 

Post Thu, Jul 21 2022, 3:53 pm
amother [ Slateblue ] wrote:
On June 7th coke closed at $635, it is currently trading at $495 that's down 22%. OP asked for something safe not something that just went down 22% in 7 weeks.
Now you want to argue if investing in Coke for an expirenced investor is a good idea? Thats a different question. Please don't advise people to go into single stocks when they ask for something safe and say they can't afford to lose it (which likely means they will sell the minute they see it going down).


I always thought people were referring to KO when speaking of coke.
Back to top
Page 1 of 1 Recent Topics




Post new topic   Reply to topic    Forum -> Household Management -> Finances

Related Topics Replies Last Post
Meat free mince
by amother
5 Yesterday at 3:28 pm View last post
Does anyone know Sonia at Suffern free library 0 Fri, Mar 22 2024, 3:09 pm View last post
M’m for neighbor who is gluten free/sugar free
by amother
5 Thu, Mar 21 2024, 1:15 pm View last post
Gluten Free MM ideas pls
by randy
4 Mon, Mar 18 2024, 6:50 am View last post
Pain free laser in boro park
by amother
9 Sat, Mar 16 2024, 8:57 pm View last post