What's the best investment that balances high yield and low risk?
I'm very new to investing. I have recently setup a budget that will allow me to save a fair amount of money. With this, plus an initial $ 1000 investment, what's the best way to get the most money back yet have a manageable risk?
What are all of the options? I'm seriously an investment newb. All I know is CD and Money Market, and I don't honestly know how those even work.
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Answer by Bad Dad
I don't think you can have your cake and eat it too. High yields are paid because that investment has significantly more risk than a low yield item. By playing it safe you can't lose as much, but you can't earn as much. If you want super safety get CD,s or T bills and notes. This is assuming the US does not go belly-up anytime soon. Interest stinks, but it is safe. There is no holy grail of high yield and low risk investing. Ask Bernie Madoff about high yield!
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European Investment Bank stand
Image by International Transport Forum
Delegates visit the European Investment Bank exhibition stand during the International Transport Forum's 2012 Summit on "Seamless Transport: Making Connections" in Leipzig, Germany, 2-4 May 2012.
Orignal From: What's the best investment that balances high yield and low risk? and European Investment Bank stand
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