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While there is no truly risk-free investment, bonds backed by the full faith and credit of the U.S. government are the closest thing to a risk-free investment. This would include Treasury Bills, Notes, or Bonds. You can buy these bonds yourself without using a broker by setting up an account at TreasuryDirect.com. Bonds issued by Ginnie Mae, Fannie Mae, or Freddie Mac are now also guaranteed by the government. If your concerned about inflation you could take a look at TIPS. Note that bonds trade daily in the bond market. Bond prices rise or fall based on whether interest rates are rising or falling. So if you sell your bond before maturity you may receive more or less than the face amount of the bond. But if you hold the bond to maturity, then you're guaranteed to receive the full face value of the bond. The next closest thing to a risk free investment would be a CD as a bank whose deposits are insured by FDIC.

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โˆ™ 2009-07-08 22:20:27
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