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.

 

Photo by rawpixel on Unsplash


Recommended Articles

How will filing for bankruptcy affect my retirement?

What is your perspective about filing for bankruptcy in regards to saving for retirement? Submitted by Chris C. When it comes to any financial decision, everything affects everything. Kudos for thinking about the impact of bankruptcy on retirement planning. The decision to file bankruptcy is a big one, as it will impact your financial life… Read more

What is Lifestyle Inflation?

Have you noticed that even when your income increases, it can feel like you still don’t have more money leftover at the end of the month? That’s because often, when our income increases, our expenses do too. This is a very real phenomenon called lifestyle inflation that can sneak up on us despite our best… Read more

How to Pay Down Your Debt

“The ONE aspect of our financial lives that causes the most distress” (cue Jeopardy music) “What is DEBT?” Correct! Yup, you guessed it (or maybe you’ve lived it). Debt is the number one cause of financial stress in the U.S. The “right” way to pay off that debt is a constant source of confusion. Even… Read more