A special rate of return is the subsequent performance of each financial supporter, but it is by no means the only important factor. When reviewing venture capital, experts focus on the potential of thorough return and what many people call "risk changes return". Basically, not all profits are equal. Smart financial supporters want to make contributions where they can get the best incentive in their gambling - whether it means tolerating lower returns or not.
From this point of view, you can prefer a speculation that pays only 2% a year, rather than a speculation that returns 20%. Why? Because, assuming that the 2% return is certain, for example, through the American depository institution, however, a 20% return means that 40% of the bet will be lost. Considering that the risk of continuing 2% is very low, especially for financial supporters who are unwilling to gamble, a 2% return may be a higher value after a period of time.
For a single financial supporter, this balance is more important. Once you understand that comparative speculation requires careful observation of two kinds of returns and gambling with the same weight, you will understand that even a small return may be an unusual arrangement when the risk is truly risk-free.
1. High return investment account
A high return bank account is essentially the best quality level for safe speculation. It provides you with major advantages in the case of absolute insufficient risk. In fact, your deposit in any bank is guaranteed by the administrative store protection company, which means that public institutions will let you get up to 250000 dollars in compensation in any misfortune.
Since the beginning of this year, the interest rate has been rising, and the bank account with the highest return in recent years paid more than 3% interest. As of October 17, the typical interest rate of the public reserve fund fluctuated at 0.21%, and the high return investment account is an incredible arrangement.
Although it may not be as dynamic as the potential financial transaction returns, a high return bank account is an abnormal flow of speculation, which means that if you really want to get cash quickly, it is not difficult to get cash without punishment. This makes keeping your secret stash - assuming you really want to limit your money gambling, what you'd better have - a truly fair bet.
First question: FDIC protection means that your cash is 100% safe. This is not difficult to achieve after all other options have been exhausted and the interest rate is much higher than that of the public normal investment account.
Best use: keep your rainy account; Financial backers look for options with little risk
2. Warehouse statement
There is little difference between a store statement and an investment account. Most of them are guaranteed by FDIC because there is no gambling. Nevertheless, they are still mobile.
With a CD, when you contribute, you will recognize the horizon of a period - most of the time between one month and ten years. Although there are several CDs, there is no result. If you deposit your money before the Cd expression is closed, you should be affected to a large extent. From one point of view, this makes CDs less important to your just in case account or backup funds.
Fundamentally, if you swear to give up your investment fund temporarily, the bank will make it easier for your investment fund to reinvest. Therefore, you should get higher interest rates.
Considering all the factors, the profit of Cd guaranteed by FDIC may not seem impressive, but as far as any gamble losing cash is concerned, they are really fantastic.
Main concern: Compared with most investment accounts, CDs should bring more benefits, but this will cause you to lose your adaptability, because you will often be punished for timely withdrawal of cash.
Best use: You should rest assured that you will not need cash within the suggested period of time; Financial supporters with stable monetary prospects hope to stay away from venture capital
Conclusion
In a word, we believe that the highest yield security venture capital we recommend can help you invest well. Based on your own situation, study more about the market situation and make judgments according to this, I believe you will soon achieve your goals of financial freedom.
