Tired of Stock Market, then switch to these safer investments

Stock market is one unpredictable gamble which can never guarantee good returns on investments. Stock market fluctuates daily and when it seems to go up, everyone jumps on this ship hoping for big profits and once it starts to go down people start to jump off by selling their investments, some make money others bear loss therefore it has never fallen in the category of safer investments. I have been investing in stocks for the last 10 years, there were times when I had good profits and other times when I suffered significant losses. Most experts recommend putting 10-20 percent of your earnings in a balanced stock mutual fund every month, this is the only way to beat ups and downs of stock market, similarly withdraw gradually over time. But what happens when you need money in an emergency and have to withdraw all your money from stocks when the market is having a down phase. Clearly this makes us to look for safer investments alternatives than stock market. But frankly, all investment carries the risk of loss.

1. BUY GOLD:
Keep buying gold coins or bars regularly, it falls in the category of safe investments also because it is universally accepted as an international currency. You can sell gold in any country and get their local currency. Always try to but 24 karat gold. Price of gold may fluctuate a bit but not as much as stocks. It is an old saying, price of gold always increases with time.

2. BUY BONDS:
Bonds are also one of the safest investments, especially those issued by "U.S. Treasuries" are the best. You can buy these directly or through a portfolio (fund). Money earned from many types bonds is also tax free. Infact, investing money in a mutual fund which has 40% bonds and 60% diversified stocks is one of the best way to control the value of your portfolio. Usually the value stocks and bonds tend to go in opposite directions. During the times of recession gold and bonds are most valuable.

3. FIXED / CERTIFICATES OF DEPOSIT (CD's):
Money in banks is the most popular investment for many people. Depending on the amount and duration of the CD's, banks may offer you a higher interest rate too. Money earned from CD's is taxable. Do not try to keep too much money in just one bank, in just one account. For example, in United Stated FDIC insures deposits for $100,000 for single owned account and $200,000 for joint accounts per institution. Therefore if you are married and have $400,000 dollars, open joint accounts in 2 banks and keep $200,000 in both so that you are fully insured.

4. INVEST IN REAL ESTATE:
Investing in a home where you can conveniently rent is one of the best safer investments. Investing in a safe and desired locality will keep the value of home keep increasing with time.

5. COLLECTOR ITEMS:
If you own really old and rare coins or stamps, they may be worth a lot of money. Rare items that have a significant historic importance are also well priced in the market. Sports memorabilia, Classic cars and fine arts also fall in this category. Although I would not recommend you to go and buy those if you do not have a good idea yourself, but do check your garage and old items, may be a jackpot is waiting for you.

6. TARGET RETIREMENT FUNDS:
Many companies have mutual funds that have a safer component attached with their regular stock market investments, and that safe component increases with your age. Therefore when you get older you see a less variation in your account value.

7. GUARD - KEEPING PRECIOUS ITEMS IN BANK LOCKER:
Keep your priced items like gold, ornaments and other precious items in a bank locker, these things will me much more safe than keeping in your own house ( like burglary or natural disasters). The value of these things automatically increase with time.

8. VARIABLE ANNUITY:
Good for people reaching retirement. But carefully understand all the fee and how long the annuity will last. Also understand what happens to the money if you unfortunately die, if that money will be passed to your spouse or your relatives. Always try to stick with big names and corporations as smaller ones can disappear more quickly.

9. OTHERS:
Savings Account, Checking Account, Money Market Funds, Municipal Bond, IRA's and Money Market Account, Unit Investment Trusts and Dividend reinvestment plans.

Many invest pundits recommend to divide your money into 3 parts
1. Riskier investments like stocks mutual funds ( avoid investing in individual stocks)
2. Moderately risky investments like real estate.
3. Safer investments like CD's.

Invest money by doing your own research, I am not an expert. All investments carries the risk of loss and fraud.

Article Source: http://www.saching.com

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