There is an almost endless array of options when it comes to managing, investing, and saving your money. But finding places to keep your money safe while still receiving a decent return can be problematic. The following discusses the best strategies for keeping your money safe and ways to make sure it goes where you want it to go after you’re gone.
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You’ve probably already heard more than once that it’s not wise to put all your money in one place, even if it is a great investment. But it’s advice that’s worth repeating. The following are some safe investment options.
- Bonds – Every portfolio should have at least some bonds for diversification and stability. The wildcard with bonds, however, is that interest rates have been kept artificially low for several years. Your best bet with a bond is to buy it at issue and keep it to maturity. This can provide protection against interest rate risk.
- Money Markets – These accounts are relatively safe, especially when the stock market is volatile. They also provide a fair amount of liquidity. On the other hand, inflation and fees can chip away at profits.
If you’d like to do more than just protect your money, there are alternatives that are relatively safe and still have the potential for earnings. Putting in the research and learning everything you can about your investment option is perhaps more important than what you actually choose to invest in.
- Real Estate – Even with the turbulent housing market, real estate is almost always a good long-term investment.
- Precious Metals – While this investment option is controversial with some, it’s an asset you can actually keep in your possession.
- Art & Antiques – Collectibles become profitable during dollar weakness. But only invest in items because you want them and will enjoy them.
Protect Your Money After You’re Gone
Most people would rather see their money go to their children or other designated relative after they die, not their wealth advisor. Estate planning is essential to making sure your money goes exactly where you want it to.
- Bank Accounts – Make sure your bank accounts are either in a trust or held jointly. It’s important to make sure any children or a spouse has legal access to your accounts.
- Will – Having a current will is a necessity. If you don’t have a will the state determines what happens to your minor children and your estate.
- Living Trust – According to NextAvenue creating a living trust while you’re still alive will allow you to control the distribution of your estate. This works by transferring all of your assets into the trust. Probate can then be avoided because technically the trust owns all the assets after you’re gone. Only property in your name must then go through probate.
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