Question by  hana (19)

How can you go about safely investing large sums of cash?

I want my money to be safe.


Answer by  cynosure (376)

Investing implies risk, and the higher the risk the higher the return. For ultimate safety, putting cash into CDs or a money market fund will offer low risk, low return. If the sums are genuinely high, dividing the money among several financial institutions is advisable, to avoid the FDIC cap.


Answer by  Jayomac (44)

One of the safest ways to invest large sums of cash is in a Growth Stock Mutual Fund. Traditionally the stock market will raise 12% each year, almost guaranteeing a return on your money. Even with the recent economic downturn, the stock market has still increased over the long term.


Answer by  GDayMate (19)

By nature, all investments have some level of risk. If you want your money to be as safe as possible, purchase certificates of deposit (CDs) at FDIC insured banks. Depending on the amount you want to invest/save, you may need to use several banks to keep your funds insured.


Answer by  sc1234 (1319)

This depends on your definition of "safely", as your limits of risk tolerance will be tested when investing. Proven methods include funding a ROTH IRA with mutual funds, which average aroun 8% growth long term.


Answer by  Steve82 (68)

Definitely a Federal Reserve backed C. D. Certificate of Deposit. The larger the sum of money, the more interest you make. You also choose length of time they hold money.


Answer by  printerboy (48)

It's probably best to work with a professional if you are investing large sums of cash. A bank account is safe, but you probably want a better return.


Answer by  tamarawilhite (17883)

A savings or checking account insured by the FDIC is safe for accounts up to $100,000. A savings bond and a certificate of deposit with a bank or credit union are almost as safe and have higher rates of return than on a savings account. Beyond that, there are no purely safe and insured places for your money.


Answer by  gleverance (720)

If safety is your concern, then treasury bills or municipal bonds are the best way to ensure you don't lose money. The return isn't high, but that's the trade-off.


Answer by  technogeek (6640)

The safest way to invest a large amount of money is to diversify. Do not invest it all in one thing or one type of investment.

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