In investing, conservative options refer to assets or strategies that prioritize preserving capital over maximizing returns. For conservative investors interested in some example investment ideas discussed on Reddit in 2020, here are a few key options that can help limit risk.
US Treasury Securities
US Treasury securities like T-Bills and T-Notes are considered among the safest conservative investments available. They carry the full faith and credit backing of the US government and offer modest interest rates with almost no default risk.
High Yield Savings Accounts
Online high yield savings accounts offered insured cash deposits with interest rates competitive with certificates of deposit in 2020, making them a straightforward conservative option.
Dividend Stocks
Some dividend stocks with long histories of steady payouts like Coca Cola were suggested as conservative equity plays that can provide income without excessive risk.
Municipal Bonds
Municipal bonds were highlighted as a tax-advantaged conservative bond investment that also contributes to local community projects.
In 2020, US Treasury securities, high yield savings accounts, dividend stocks, and municipal bonds were some of the key conservative investment ideas referenced as low-risk options for Reddit investors looking to preserve capital.