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7 safe places to park your cash

Bankrate Logo By Steve Santiago of Bankrate | Slide 1 of 8: <p>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.</p><p>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.</p><p>Looking for a place to stash your cash? <a href="http://www.bankrate.com/cd.aspx?ic_id=Content_CTA1">Compare CD rates</a> today.</p><p>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.</p><p>Be prepared to do your homework and shop around.</p><p>Relatively safe havens to park your cash include:</p>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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