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7 safe places to park your cash

Bankrate Logo By Steve Santiago of Bankrate | Slide 1 of 8: Whenever the stock market gets rattled, panicky investors flee to the relatively greener pastures of fixed-income investments. Not only are returns relatively predictable, but some of these securities have tax advantages, and they usually are less risky than stocks.The trade-off, of course, is that in lowering risk exposure, investors are likely to see lower returns over the long run. That may be fine if your goal is to preserve capital and maintain a steady flow of interest income. But if you’re looking for growth, consider investing strategies that match your long-term goals.Looking for a place to stash your cash? Compare CD rates today.Risk tolerance and time horizon play big roles in deciding how much to allocate to fixed income. Conservative investors or those near retirement may be more comfortable allocating a larger percentage of their portfolios to fixed income to minimize risk. Those with stronger stomachs and workers still accumulating a retirement nest egg probably should diversify more.Be prepared to do your homework and shop around.Relatively safe havens to park your cash include:Certificates of depositMoney market accountsMoney market fundsTreasury securitiesGovernment bond fundsMunicipal bond fundsShort-term corporate bond funds

Safe havens for your cash

Whenever the stock market gets rattled, panicky investors flee to the relatively greener pastures of fixed-income investments. Not only are returns relatively predictable, but some of these securities have tax advantages, and they usually are less risky than stocks.

The trade-off, of course, is that in lowering risk exposure, investors are likely to see lower returns over the long run. That may be fine if your goal is to preserve capital and maintain a steady flow of interest income. But if you’re looking for growth, consider investing strategies that match your long-term goals.

Risk tolerance and time horizon play big roles in deciding how much to allocate to fixed income. Conservative investors or those near retirement may be more comfortable allocating a larger percentage of their portfolios to fixed income to minimize risk. Those with stronger stomachs and workers still accumulating a retirement nest egg probably should diversify more.

Be prepared to do your homework and shop around.

Relatively safe havens to park your cash include:

- Certificates of deposit

- Money market accounts

- Money market funds

- Treasury securities

- Government bond funds

- Municipal bond funds

- Short-term corporate bond funds

Click ahead to read about each option.

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