Each person has a willingness to accept higher or lower risk investments, often based on their experience, knowledge and investor profile.

Of course, only you can decide how willing you are to risk, but to help you with this task and bring more security to your investments, we have gathered the best low-risk investment options. Check out!

Best Low-Risk Investments for 2022

If you are a new investor and want to start taking smaller risks until you feel safe to take riskier steps, the best way is to start small and fast. To give you some low risk investment options, see the list we have prepared below:

These investment options carry a very small amount of risk overall. In turn, you won’t expect to make as much, but your money should be relatively safe and still earn yields.

1.    Certificate of Deposit

The Certificate of Deposit, or just CD, is one of the lowest risk investments you can find. That’s because you deposit an amount of money for a determined time and have a guaranteed amount as a return, regardless of the variation in interest rates. The longer the period established, the more interest the financial institution will pay.

Evaluate the interest and amounts allowed in financial institutions and find the one that best suits you

2.    Annuities

Despite causing a lot of controversy among investors, annuities can be a good low-risk investment option for a period of time, depending on the type of investor you are.

The tip is before you start, talk to a good financial advisor so he can tell you if this is the best option for you at the moment. This is because annuities are more complex investments, which require knowledge about the different types and advantages of each one.

3.    US Saving bonds

US Saving Bonds, like the Treasury Inflation Protected Bonds, are backed by the US federal government. Due to its very low chance of debt default, it becomes a great option for low risk investment.

4.    Money Market Account

If you don’t want to miss out on any of the top investments available, it’s worth creating a mutual fund in a money market account. Even though it is not 100% foolproof, they provide strong protection of the underlying value of your invested money. So, you don’t have to worry about the daily fluctuations of the market when making your investment.

5.    Treasury Inflation Protected Securities (TIPS)

The US Treasury offers several types of bond investments, including TIPS, which is one of the lowest risks. You can opt for the fixed interest rate, which does not change for the entire duration of the bond, or the built-in inflation protection guaranteed by the government.

6.    Cash Value Life Insurance

Cash value life insurance is also a controversial type of investment. In addition to paying your beneficiaries a certain amount when you die, it also allows you to accumulate a portion of your payments as an investment.

An advantage of this type of investment is that although the accumulated value cannot be used in your lifetime, it is not affected by income tax.

It is worth mentioning that cash value life insurance is not an investment for every type of person, but still, it is a great way to guarantee your heirs a good amount of money without it being affected by income tax.

These were some low-risk investment options that you can start without feeling insecure. It is always important to speak with an investment adviser to ensure the best choice for you and that meets your needs.