Risk has always been a necessary evil of investing. Still, in today’s post-COVID world, our investment options are more unpredictable than ever.

Without warning, your investment may be affected by supply chain disruptions and new COVID regulations. As such, many people are too scared to invest in anything. However, you do still want passive income to give you a good monthly cash flow for your future retirement, so how do you start?

Today, though, we’re going to help you overcome your investment worries. Below, we list several types of investments that are (mostly) low-risk and highly profitable.

Plus, you don’t have to be a stock market wizard to get started. In fact, most of these options have nothing to do with stocks. Read on to discover the best investment options in 2022.

  1. CDs

If you have time to take the slow track, fewer investments are safer than CDs (Certificates of Deposit). Put simply, CDs are basically high-yield savings accounts that you can’t access until they mature. Even more simply, it’s like burying a lump sum of money and then digging it up with interest several months/years later.

Many CDs mature in as little as 6 months. If you desire, though, you can choose a maturity date up to 5 years away.

CDs are virtually risk-free. You can even ladder your CDs to create a recurring payout.

For instance, you can start new CDs, with the same term, every month. Then, as they mature, you get a recurring monthly payout.

  1. High-Yield Savings Accounts

Having a high-yield savings account is like getting free money. What we mean is, you should already have a savings account for emergencies, no matter what. So, while this money is just sitting around, it could be earning interest at a high rate.

Generally, though, you need a sizeable opening balance and good credit to open a high-yield savings account. But anyone who’s qualified should definitely get one.

  1. Series I Bonds

Inflation is a huge concern with standard saving bonds. Namely, by the time you collect, the interest earned may actually be less than the cost of inflation. I-bonds, on the other hand, actively offset the cost of inflation by adjusting their rates biannually.

  1. Index Funds

Index funds are a low-cost, minimal-risk method of stock market investing. If you’re considering investing in stocks for the first time, start with index funds. Furthermore, you can use an investment platform like Monex Securities for additional help with your index fund investment.

  1. Dividend Stock Funds

Most types of stocks only make you money if you wait for them to appreciate and then sell them. But dividend stocks can make you money while you hold onto them. Specifically, the company that issues the stock pays a percentage of its profits to its shareholders as dividends.

  1. Rental Housing

Real estate investment is extremely lucrative in general. But it’s also expensive and risky. Renting out your investment properties earns you extra income, which protects you against potential risk.

  1. Crypto Investment

Cryptocurrency offers a more intense investment experience than the other options on our list. If you’re looking for big risks, big rewards, and dramatic ups and downs, invest in cryptocurrency.

Consider These Types of Investments

Don’t let fear stop you from building your investment portfolio. Instead, minimize your risk with the types of investments listed above. 

Next, get the latest tips and news about trading platforms, real estate investment, cryptocurrency, and more. Find this and other investment advice in our Investing Archives.