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Investments for the Risk-Averse

With savings accounts paying practically nothing in interest these days, many people are choosing to put their money elsewhere in order to generate a more substantial return. But what if you’re the type of person who’s really afraid of losing money? After all, most investments carry a degree of risk, and if your tolerance for it is low, your options may be limited.

Traditionally, those who are truly risk-averse would make a point of avoiding the stock market, and while some stocks are safer bets than others, if the idea of losing money is enough to bring on a panic attack, you’re probably better off putting your money into something less volatile. Here are a few options to consider:


Certificates of Deposit, or CDs, are a relatively safe bet because they’re insured by the FDIC up to $250,000 per depositor. With a CD, you’re locking your money into a fixed rate for a predetermined period of time, but that return is guaranteed. Plus, you can pick the time period for investing that works best for you. If you’re afraid to tie up your money for a year or more, for example, you could open a 6-month CD and snag a better interest rate than what your savings account is offering.

Title Loans

Car title loans are quick, short-term loans that you can get using the equity in your car or vehicle. If you own your car, you can borrow money based on it’s resale value. You need to know that these loans are usually for 60 days or less.

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