Some of the safest investments are bonds. A bond is a “security” which gives the holder a financial claim on the issuer. This claim protects the holder in circumstances in which the issuer is unable to pay the amount due. There are various types of bonds that you can purchase. Bonds are similar to Certificates of Deposit. Instead of being issued by banks, however, bonds are issued by the Government or private companies. Depending on the type of bonds that you buy, your initial investment may double over a specific period of time.

Mutual funds are also relatively safe. Mutual funds exist when a group of investors put their money together to buy stocks, bonds, or other investments. A fund manager typically decides how the money will be invested. All you need to do is find a reputable, qualified broker who handles mutual funds, and he or she will invest your money, along with other client’s money. Mutual funds are a bit riskier than bonds.

One of the safest, yet mis-understood investment vehicles with government guaranteed interest rates of between 12% and 50% with the potential for even more are Tax Lien Certificates.

Unpaid property taxes often create a cashflow problem for local governments. To solve this problem, local governments allow investors to pay off these taxes. The investors receive the government’s lien for property taxes.

Depending on state laws and competition, investors can realize returns as high as;

* 16% per year in the state of Arizona (Sec. 42-18053),

* 18% per year in the state of Florida (Sec. 197.172 (2)),

* 20% per year in the state of Georgia (Sec 48-4-42) and

* 50% per year in the state of Texas (Sec. 34.21 e 2)

Clearly, a rate of return guaranteed by a local government and backed by real property with the right of foreclosure is an incredibly safe investment with a very high rate of return.

By: David Brumbaugh

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