What investment would carry a low risk, but high rate reward?
Is there a middle ground investment between the low interest rate of, for example a CD, and the high risk of stocks?
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Answer by Zack
It's hard to say. Cd's are generally pretty good, however most rates right now are low due to the economy. Roth accounts are good for retirement because they allow you to ear compound interest without paying taxes on the interest until you re-open the account at the retirement age. Government bonds are also low risk, as are the cd's. What happens is you buy a 1,000$ bond and the government can use that money. You will receive 2,000$ in about 7 to 10 years depending on the bond. There really isn't a low risk high reward investment. Low risk goes with low reward, as does high risk too high potential reward.
By the way, moneychimp.com is a great online calculator for all sorts of interest bearing accounts.
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