“What stock can I invest in that will earn money with low risk?”

“What stock can I invest in that will earn money with low risk?”

Submitted by Fernando A.

I’m glad you are thinking about investing while also considering the risk involved. Clearly you understand the relationship to risk and return (low risk = low return) and I am wondering about the goal of your investment plan.

Since you ask specifically about “a stock,” I want to focus on the benefit of diversification (not taking the risk of putting all of your eggs in one basket) and using mutual funds to begin your investment plan. If you invest in one stock, you are subject to the ups and downs of that stock with no protection. The benefit of a mutual fund (a basket of stocks and/or bonds) is that when one is up, another is down and you are balancing out your risk.

There are several apps to help you get started with investing. I am using Acorns. I find it simple to use and it keeps me motivated to invest regularly for my future goals.

Note: We have no affiliation with any financial product or service mentioned in this article. All information is provided for educational purposes only and is not to be considered financial advice.

 

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Saundra Davis

Saundra Davis is a nationally recognized financial coach and educator. Her experience in the U.S. Navy, where she made EVERY money mistake possible, and her twenty years serving community-based organizations led her to the reality that the best way to help people find a path out of poverty is to help them become their OWN financial expert.