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Low-Risk-Stocks

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					Low Risk Stocks

Stocks are a great way to secure your family's financial future. From
braces, to college, to weddings, and retirement you will find a way to
pay for all of these things and a few of life's unexpected emergencies
along the way. For this reason many people have an inner battle as to
whether it is a better idea to invest a little more aggressively or
conservatively in order to get the most for their money. The problem with
low risk investments for many is the fact that lower risks typically
render lower yields. This means that there is less money to work with
when that important day comes (at least in theory). Of course if you take
a few larger risks along the way you still risk having less when the time
comes to cash in your nest egg and rely upon it for a living or to take
care of the needs we encounter along the way.

Common low risk investments include mutual funds and certificates of
deposits though there are many stocks that would be considered low risk.
Those would be the giants of industry that have withstood various tests
of time and have come out no worse for wear as a result. It is important
to remember that low risk doesn't indicate that the investments you are
making carry no risk. There is no such thing as a no risk investment
though these mentioned above carry far fewer risks than some of the more
volatile markets in which one could choose to invest.

Another low risk investment for many is to go with childhood favorites
such as Hershey, Mattel, GE, and other stocks that have been around for a
very long time and have become almost a household name. The longevity of
these companies makes them attractive for those looking for long term,
low risk investments. They are relatively steady experience growth that
often goes hand in hand with inflation. They do not generally experience
the roller coaster ride that many stocks on various exchanges may go
through so they are definitely not fodder for the manipulations of day
traders. They are instead solid investments that while not flashy in
their offerings are stable and that is something that low risk investors
admire in stocks.

Certificates of deposit (CDs) have been known to offer significantly
better rates of returns than many mutual funds and most interest rates
for savings plans. If you are going to go the route of a mutual fund you
either need to carefully consider how conservative you want your mutual
fund to be (more aggressive funds can make more money than the average CD
but you'll need to carefully consider which will be best for your
financial goals) before deciding which is the better option of the two
for you.

If you choose to go with mutual funds there are several types from which
to choose. You need to decide from the beginning if you prefer a mutual
fund that will give you a monthly income now or if you want a mutual fund
that is dedicated to slow growth and a constantly increasing value. You
will want a mutual fund that pays out a certain amount of money each
month as you near retirement. Until then it is in your best interest to
avoid those, as there is very little, if any, growth in the value of
these funds.
Investing in the stock market is taking a risk. For some people investing
in the market is a leap of faith while others are more confident taking
baby steps towards their financial goals and future plans. Whatever type
of investor you may be you will find some value in having at least some
mutual funds and lower risks investments included in your portfolio. If
you do not have any in your portfolio at the moment, there is no time
like the present to include them.

PPPPP

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