The Safest Investments You Can Make in 2024

Everyone wants to make smart, safe investment decisions. We want our money to grow, but we may not want to take a big risk when it comes to investing our hard-earned cash. We looked to Forbes for some advice on the best, safest investments for the year 2024 and discovered these 14 things. Invest your money wisely, and you can watch your account grow! Wouldn’t that be a great way to spend the year?

Note: The content of this article is for informational purposes only and is not a substitute for professional advice. Always consult with a qualified professional for advice tailored to your individual circumstances.

Savings Bonds

US savings bonds are considered a very low-risk investment. Savings bonds have a fixed 30-year interest rate that will remain steady throughout the bond’s life. They also have a variable interest rate that adjusts with inflation. Savings bonds are outstanding if you live in an area with high tax rates, as the interest payments are exempt from local and state taxes. Hold on to your savings bonds for at least one year, as you will have to pay a minor penalty if you cash out early. 

Certificates of Deposit

Banks offer certificates of deposit (CDs) as a way to get cash. They can use this cash to lend to others or invest independently. However, if you buy a bank CD, you can earn a pretty good return on your investment. CDs are FDIC-insured accounts, so you are guaranteed to make a fixed interest rate. When you put your money in a CD, it stays there for a set period which is determined by the bank. In return, the bank will pay you a guaranteed interest rate so you know exactly what you will earn. The longer you leave your money in the CD, the higher the interest rate you will get. It is best to invest long-term!

Money Market Accounts

Money market accounts are another tremendously low-risk, FDIC-insured account that will yield modest returns. A money market is considered a mutual fund that pools the money from multiple investors to invest in short-term, high-quality debt securities. One benefit is that it provides liquidity, allowing you to withdraw cash anytime. It is an excellent place to invest your money while keeping it accessible. 

Cash Management Account 

A cash management account combines the features of a checking and savings account. It is offered by both financial institutions and non-banks, offers higher interest rates, and provides easy access to your funds. The modest returns and safety of these accounts are very appealing. They also offer additional services like bill pay and debit card access, making them even more interesting.

Online High Yield Savings Accounts

These accounts are very similar to traditional savings accounts but operate solely online. There are no brick-and-mortar bank buildings to visit, and everything is managed online. Since financial institutions are not spending money to operate physical buildings, they pass these savings on to you, offering higher rates of return on your investments. It is also very easy and convenient to do all of your banking from the comfort of your own home. 

Treasury Notes, Bills and Bonds

Buying a treasury is like lending money to the government. You are guaranteed to get the face value of your loan back, and you will also be paid interest on your loan. Treasury bills are held for one year, bonds mature after 20 or 30 years, and notes are available in several annual increments. You will get regular interest payments at set intervals. This can be nice if you are looking for a way to make a little additional cash on a regular basis. The risk is also nice and low so you know your money is safe! 

Serial I Bonds

Serial I bonds are US savings bonds with variable interest rates that change with inflation. The rate is updated bi-annually, and interest is added to the bond’s principle. This means the bond keeps growing, earning you interest on an increasingly higher amount. Interest payments on serial I bonds are typically exempt from state and local taxes wihch makes them them a good choice for people living in areas with high taxes. You can purchase Series I Savings Bonds easily online through the TreasuryDirect website. You can also buy them with your federal tax refund when filing your tax return, making it an easy purchase!

Fixed Annuities

Fixed annuities are a type of insurance products that offer guaranteed periodic payments for a specified term. They offer a fixed interest rate, making them a stable and predictable investment. This can be appealing to those seeking a steady income, especially for retirement. Fixed annuities also often come with tax-deferred growth. This means your investment will accumulate without immediate tax implications. 

Preferred Stocks

Preferred stocks have a slightly higher risk level, but they are still considered a fairly safe investment. They are a type of equity security that offers fixed dividend payments and priority over common stockholders. They are more stable than standard stocks, pay regular, predictable dividends, and are less volatile. Preferred stocks often have a fixed dividend rate which means they are a reliable source of income. You can purchase preferred stocks using an online brokerage account. You can search for the preferred shares of the company you’re interested in and place an order.

Corporate Bonds

A company will offer corporate bonds to raise money quickly. These bonds are considered safer than stocks because they provide fixed income and have a higher claim on assets in case of bankruptcy than equity holders. The safety of corporate bonds can vary depending on the issuing company’s creditworthiness, with higher-rated bonds generally offering lower risk. They can provide fairly predictable returns and be a low-risk investment option for those looking for reliable income.

Dividend Aristocrats

While almost all public companies pay dividends, not all are dividend aristocrats. To be an aristocrat, the company needs to be on the S&P 500 list which means they have consistently increased their dividend payouts for at least 25 consecutive years. They are considered to be very safe investments as they are a reliable source of income. However, these stocks are often pricey as you are paying for the security of guaranteed dividends. 

Standard Bank Savings Accounts

Open a savings account at your local bank, and you will likely get a low interest rate. However, that low interest rate is guaranteed. You can let your money sit in the bank and slowly grow over time. While this may be the least aggressive way to invest your money, at least you know it is secure! Plus, you can access your bank savings anytime. Sometimes, liquidity and a low interest rate are a good option. 

401K

It is always a good time to open a 401K. This type of savings account is a smart investment because it allows you to save for retirement with pre-tax dollars. That means you will reduce your taxable income now while growing your savings, tax-deferred, for later. Many employers also offer matching contributions which essentially means free money for you to boost your retirement fund. The long-term nature of this type of investment helps you weather market fluctuations, making it a safe choice for building your future wealth.

Target Data Funds

Target-date funds are designed to automatically adjust their asset allocation based on a specific retirement date. This means they are a great choice for long-term investors and people who want to start saving for retirement early. As the target date of retirement approaches, these funds gradually shift from riskier investments, like stocks, to more stable options, like bonds, reducing overall volatility. This built-in strategy helps protect your investments as you near retirement, making them safer than many other investment options.

This article was inspired by Forbes and originally published at WMN Lives.