Is There Any Such Thing As a Zero Risk Investment? By Warren Elkin, Norhill Wealth Strategies

Transfer-Your-Roth-IRABy Warren Elkin

Wouldn’t it be wonderful if we lived in a world where we could earn a high rate of return on an investment without accepting any risk? While we readily accept that most of us won’t be buying into that type of scenario, as we head closer to retirement age, we would like to have some of our retirement funds in zero risk investments.

What Constitutes a Zero-risk Investment?

A riskless investment is one in which the return on the investment is a known figure and the issuer of the investment is a highly trustworthy agency. Generally speaking, securities offered by the United States government such as Treasury Securities are considered riskless. Although the U.S. government could potentially default on payment, most experts agree that the country would be in dire straits should such a default ever actually occur.

Savings accounts and certificates of deposits, or CDs, at insured financial institutions are also types of zero-risk investments that people have found useful, especially when higher interest rates were available.

Why not choose solely no-risk investments?

A major drawback of zero-risk or low-risk investments is that their yield is extremely low in the present financial environment. People want their capital to earn money, preferably at rates that at least keep up with current inflation rates each year.

According to the U.S. Inflation Calculator, inflation rates in the United States from 2007 to 2013 ranged from a high of over 4% to a low of about .01%. Inflation rates will continue to fluctuate, so those investors who hold onto cash positions actually lose money each year as their purchasing power declines according to the rate of inflation.

While there is no way any financial adviser can guarantee you a high rate of return in exchange for little or no risk, we can advise you in making sound investment decisions where you trade risk for reward as best fits your position and financial requirements. Contact us or visit our website to learn more.

Make sure you have all the facts necessary to make the right decision with your financial future by calling us today! We can help you with information regarding Annuity, Annuities, Fixed Annuity, Fixed Annuities, Variable Annuity, Variable Annuities, Immediate Annuity, Immediate Annuities, Income Annuity, Income Annuities, Deferred Annuity, Deferred Annuities, Index Annuity, Index Annuities, 401k Rollover, IRA Rollover, Retirement Income Planning, Immediate Fixed Annuity, Immediate Fixed Annuities, Annuities Calculator, Deferred Variable Annuity, Immediate variable Annuity, Immediate Income Annuity, Immediate Income Annuities, Deferred Variable Annuities, Best Fixed Annuities,
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Speak with us now at 877-476-5051, email Warren at warren@warrenelkin.com, or go to www.warrenelkin.com to learn more about Warren Elkin of Norhill Financial and his unique process to make sure your financial decisions are made in your best interest.