How to protect your savings?

8th Nov 2009 by Amelia Timbers

The best way of protecting your savings is by putting them in a bank. Despite the 2008-2009 financial crisis, banks continue to be the safest place for your assets. The FDIC also insures accounts up to $250k . Keeping your money "under the mattress" leaves you very exposed to theft; one thief may be able to take all your assets. Another safe place for assets are safe deposit boxes. These are very private boxes, also in banks, kept in the vault. Access to these boxes requires ID and even bank staff does not know what is contained in them. In terms of protecting savings investment-wise, you are most "safe", there is the least "risk" by a) not investing- any investment involves risk, by b) investing in government bonds (the defacto "risk free" asset- never has defaulted) or by c) investing in large cap, slow growth dividend paying entities. Enormous old companies with strong cash flow projections; think GE, Microsoft, 3M, Bayer and other behemoths. Companies like these are very unlikely to go under, so your assets should maintain and even increase their value moderately when invested here. To rehash, put money in savings accounts, put hard assets (jewelry, etc) in safe deposit boxes, and only make low risk investments (government bonds, slow growth/ large/ established companies).

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com