If you had $1,000,000 USD is there a portfolio that will give you good intrests at very low risk if you ivens?

Question

Is there an investment that will give you good intrests at very low risk for 1,000,000 USD?

Answer 1

Corporate Bonds. Companies like Home Depot or Wal-Mart pay 6-7%. Even in the very unlikely possibility that they would go bankrupt, bondholders get paid first.
Diversity is still a good think. Some of the utilities (like TVC, GAS, EXC, SO, DUK) pay up to 4% on dividends while still increasing share value on a long term basis.
That leaves only inflation and geopolitics to worry about. A good portfolio should have some stocks that do well in inflationary or war time issues. I would suggest Disney, Starbucks, United Technology, FedEx, and Microsoft as companies that thrive in difficult markets.

Answer 2

Someone with a million to invest, is not overly concerned with low risk unless they are living on fixed income. In that case they might be somewhat concerned. Such a person might put 1/2 into t-bills which pay currently about 4.9%. The other 1/2 might be invested in a broad selection of equities. You must remember that inflation is the scurge of investments. It must be protected against. Equity investments are a reasonably good way to protect against inflation. The long term expected return of such an investment strategy is about 7 1/2 % annually. Or about $75,000. With inflation running somewhere between 4% and 5% depending on how trustworthy you thing the government statisticians are, you are netting about $30,000.

Answer 3

It depends on what you mean by "very low risk." CD's and money market accounts are about as low risk as you can get, but they're only paying 5-6% right now.

Generally, the more (short-term) risk you're willing to take on, the higher your expected return. A well-diversified stock portfolio (like a mutual fund) will fluctuate in value over the short term, but in the long run you could expect an average annual 9-10% per year.

I hope that helps.

Answer 4

Yes. Often, you're going to find banking institutions with some certificate of deposit offers. All of those financial institutions offer a large CD. The rate of return for a bank's certificate of deposit product is a functional interest rate and time. Usually, the investment rate for a certificate of deposit is high when "interest rates" for the long-term, consumer loan is high. Often, a financial institution does not advertise a 'posh deposit'. If the guy at the loan desk discusses any business venture with you--think twice before investing. Never show up with a check, cash only [in a single, white suitcase with a rope tied around it.]

Answer 5

Invest in the S&P 500 or the Dow Jones. If you lose your money in those it means the country is falling apart, and money will be the least of anyone's worries at that point. No but seriously, they have very little risk

Answer 6

Good growth and income mutual funds with long track records are a good start. Separating the money amongst many is a good idea.

Answer 7

www.stocksrus.instantecom.net

The best site I have found on the web.