Income Investments

Looking for safe income investments? Read our article and discover companies that offer safer income investment opportunities. As always do your own due diligence.

Income Investments that Won’t Lose Money

If you’re a working individual and you want to start making income investments, the process is relatively simple, and it is easier to get started than you may think. Essentially, all you need is a bundle of savings set aside to get you started, plus a regular portion of income that you can use to keep feeding your investment portfolio with new expansions. That’s all you need. After that, you can start deciding on which brokers to work with, you can take control of your own investments, or you can do a little bit of both.

The important thing is to diversify your income investments. Of course, this is simple Economics for beginners, but it’s amazingly easy to forget. Cultivate an investment portfolio that gives you a strong hand in at least four different types of income streams—but six is the ideal number. I’ll give you a few things to start with.

First, look into U.S. Treasury securities. Although recent economic events may lead us to think otherwise , these are in fact among the more secure investment methods. They’re secure as long as the U.S. government exists, which is liable to be a long time. The real value of these securities tends to fluctuate along with the value of the U.S. dollar, which makes this an even better time to start buying U.S. Treasury securities. The value is down now, but it’s sure to go up.

Also, you can look into corporate bonds, which are essentially IOUs that companies give out to bring in additional investment capital. They usually come in denominations of $1,000, although you can sometimes find them for more or less, particularly in the secondary market. In general, they have a low interest rate, so you should buy a few of them and hold onto them as they gain in value.

Of course, these bonds are only good for as long as that company exists, so they can be slightly risky. That’s why you should only take them out on companies that you know are going to be around for a while. There is no sure bet, but there certainly are some companies that are not likely to go away any time soon, and then there are others that are in perpetual danger of collapse. While you should probably stay away from bonds for more volatile companies, they can often be bought at higher interest rates, if you want to take a little risk.

Finally, there’s good old reliable U.S. savings bonds, particularly those in the EE and I series. These can be bought in a wide range of denominations from $50 to $5,000, and they tend to have a healthy interest rate that matures after a few decades. Some people like to take out several medium-sized bonds—typically for $1000—so that they can be cashed in smaller denominations in crises situations or when you want to give a gift to someone. However, it’s smartest to hold onto them until they’ve matured, which can more than double their value.