The risk hater's portfolio

Are the wealthiest people those who take the greatest risks with their money? Probably not, but undoubtedly they must at some point or another have to make decisions involving some level of risk.

Imagine if for the fear of motor accidents, one decides never to drive or enter vehicles driven by others. Wouldn't that be ridiculous? The smart thing to do would be to learn to drive safely and to ensure being driven by drivers you feel secure with. Therefore being risk averse is no excuse not to invest.

Risk avoidance is natural, and if you are risk averse, you probably won’t change your mindset soon, but have no fear because the investment world has room to accommodate your lifestyle.

So here are three investment choices that are considered best for risk avoiders. They are designed to protect you from high investment risk although at a low return.

#1: Treasury Bills (T-bills)

Did you know that Governments generally raise money through taxes and issuing securities?

One of such securities is the Treasury bill (T-bills). The T-bills are issued by a government, with a promise of repayment upon maturity. They have original maturities ranging from 30 – 180 days (30 - 364 days in some countries).

T-bills are considered safe investments because governments are less likely to default on the repayment of debts. However, it is important to consider the risk level of the investing environment of a country through credit ratings.

#2: Bank Savings Accounts

A savings account is designed to keep your money until you demand to have access to it (which can be at any time at all). They are likely to yield slightly higher interest rates compared to checking accounts.

They are also considered safe forms of investments because of the very little risk involved. Have in mind that it is important to consider the debt paying abilities of the banks you decide to keep your money in.

#3: Fixed Annuities

Another wonder insurance companies perform that most people aren't aware of is the wonder of annuities. Monies invested in fixed annuities are managed by insurance companies (mostly life insurance companies) who in turn pay you a guaranteed return.

As mentioned earlier, risk avoidance is no excuse not to invest. Now you have 3 ways to invest money and not worry about loosing it because you are provided with an avenue for low risk and sure returns. Good luck at it.