Darcy Bergen Discusses Options for Low-Risk Investors

Financial planner Darcy Bergen recently discussed options for low-risk investors. 

The COVID-19 pandemic has made many people hesitant to invest in the stock market. However, financial planners like Darcy Bergen explain that not all investments need to be extremely risky. There are plenty of low-risk options that allow you to invest and build your portfolio, even during times of uncertainty.

“Low-risk investments may indeed result in lower returns throughout the investment,” Bergen said. “However, they can be extremely beneficial for some individuals, especially in difficult financial times like these.”

Darcy Bergen added that low-risk investments provide numerous benefits. They can provide steady income and preserve your capital. Several low-risk investment options have recently been praised by Bergen as well as numerous reputable sources, including Forbes, Bankrate, and more.

“An excellent low-risk investment option is a high-yield savings account,” Darcy Bergen said. “These provide a decent return for your money while protecting your capital. Best of all, savings accounts are completely safe, because they won’t allow you to lose your money.”

Bergen added that most bank accounts in the United States are government-insured up to $250,000. That provides an additional level of security if the bank ceases to exist.

Another low-risk investment option backed by Bergen is money market funds. These funds include several low-risk investment options pooled together. They are generally sold by mutual fund companies and brokerage firms. These funds are liquid, so you can take them out at any time without being penalized. They also tend to be viewed as safe investments by most financial planners and expert investors. 

“Corporate bonds are commonly viewed as risky, but there are many low-risk options as well,” Bergen said. “Corporate bonds can be low-risk and beneficial if you’re a wise investor choosing bonds that are expected to mature within a few years. Long-term corporate bonds tend to be sensitive to interest rates and long-term changes, but shorter-term bonds can be low-risk investments that provide return.”

Bergen suggested speaking with your financial planner about options regarding corporate bonds. While this option is not entirely risk-free, high-quality corporate bonds from reputable companies can help diversify your portfolio while offering returns. 

Bergen concluded by suggesting fixed annuities as low-risk investment options that can also provide income. Fixed annuities are contracts with insurance companies that pay you over a certain period in exchange for your upfront payment. This option can be especially useful for retirees, as you can make the upfront payment now and begin taking the income out upon retirement. You may also decide to take your income immediately. 

“Annuities allow you to increase your income over time in a way that is tax-deferred,” Bergen said. “They can also come with guaranteed minimum payouts, death benefits, and other benefits.”

Bergen suggested meeting with your financial planner to discuss if fixed annuities could be a smart low-risk investment option for you. Fixed annuity contracts can be difficult to understand and loaded with fine print, so it’s best to review your contract with an expert before making any decisions.

Darcy Bergen is an experienced financial planner with decades of experience in the field. He currently runs Bergen Financial in Peoria, Arizona, offering his expertise to clients near and far. 

Investment advisory and financial planning services offered through Simplicity Wealth, LLC, a Registered Investment Advisor. Sub-advisory services are provided by Advisory Alpha, LLC, a Registered Investment Advisor. Insurance, Consulting and Education services offered through Bergen Financial Group. Bergen Financial Group is a separate and unaffiliated entity from Simplicity Wealth and Advisory Alpha.

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