5 financial terms not to take for granted

Safe © bikeriderlondon/

Safety can be a comforting word. We all strive for safe neighborhoods, schools and, in many cases, investments that shelter our hard-earned savings. Hebeler shatters the notion. "Nothing is safe!" he says. An investor may prefer to avoid that reality, but with any investment comes risk -- the archenemy of safety.

Drummond Osborn, a Certified Financial Planner professional and owner of Osborn Wealth Management, says safety is a relative concept: "Safe as compared to what? Is it as safe as an FDIC-insured CD, a U.S. Treasury bond -- or is it just safer than a stock?"

Palushaj puts the traditional measure that bonds are safer than stocks to the test. "On paper," she says, "bonds can appear safer than stocks because bond owners get paid first if a company goes bankrupt. But if you receive just pennies on the dollar, are they really safer?"


Show Bankrate's community sharing policy
          Connect with us

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Can heirs cash an old trust?

Dear Dr. Don, The youngest of 6 children, I am 48 years old. My father joined the Navy at 22. In Italy, he met his bride and my mother, and returned to the U.S. to raise our family. In 1959, he bought a trust certificate... Read more



Sheyna Steiner

Man loses $100K, learns valuable lesson

Traders can make a tidy profit short selling stocks. But they stand to lose everything. That just happened to one guy.  ... Read more

Partner Center

Connect with us