Advice on investments

[Scharnhorst]

I have a few specific questions 

1- Which investments are the lowest risk? I have heard municipal bonds are one of them is that true ?

2-Is there is way to protect your investment from personal lawsuits by forming a LLC ? What kind of a attorney I would need to consult for that ? thanks 

[bada_bing]

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@Scharnhorst wrote:

I have a few specific questions 

1- Which investments are the lowest risk? I have heard municipal bonds are one of them is that true ?

2-Is there is way to protect your investment from personal lawsuits by forming a LLC ? What kind of a attorney I would need to consult for that ? thanks 

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Muni bonds have a risk that is dependant on the financials of the borrowing entity. A lot of muni bonds are "junk" rated 

because the borrowing entity is near bankruptcy. An extreme example is muni bonds issued by Detroit or Puerto Rico.

"Good" muni bonds have a risk about equivalent to an AAA corporate bond, i.e. very good but not the absolute lowest.

I don't know about an LLC shielding investments. I have an LLC to shield my personal assets from liabilty of my sideline

business, so in a round about way it is protecting my personal assets, but only from the liability of the LLC, not the other

way around. Definitely consult an attourney. 401K accounts (but not IRA accounts) are not garnishable for judgements,

so investments in 401K's have a special immunity from judgements.

[CredStudent]

1. The lowest risk investment would be a FDIC insured savings account, for instance ALLY offers around 1% or a CD you can get around 2% if can live without the money for say 5yrs or you could set up a rotating schedule with multiple CDs spread out overtime so say every 3 or 6 months starting in a year or so you could have access to some of the money or if there is no need at the time reinvest in a new CD. 

Bonds are pretty safe, especially treasury bonds however the rates are not very good at the moment. If you are going to get into bonds other than treasury you need to do thorough research into the company to make sure you think they can pay their bills. If the company files bankruptcy before you liquidate the bonds you will likely not recieve all of your investment back. You will hold priority over shareholders but still not likely to get all of your money back. ALL investments carry risk even a stash of cash looses value.

Some people think precious metals are great investments, while gold tends to grow in value with inflation I personally don't like it. No real good reason just not a fan.

2. What kind of investments are you considering making that you would be worried about being personally sued?what could you be sued for unless you are in fact starting a bussiness with services. You can't be sued for the activities of a publicly traded company for simply being a shareholder. Do you think anyone would own stock in say cisco if they could be sued when a firewall doesn't do what it is supposed to? You would have to explain the kind of investment you think you could be sued for before anyone could say if an LLC is a good idea. 

[Scharnhorst]

Sued for damages by landlords , my childs mother for whatever reason ( I dont see that happening since I pay CS and all other things that a reasonable court would enforce and as advised by my attorney) , employers for backing out from a contract etc just thinking of possible scenarios 

[Scharnhorst]

The lowest risk investment would be a FDIC insured savings account, for instance ALLY offers around 1% or a CD you can get around 2% if can live without the money for say 5yrs or you could set up a rotating schedule with multiple CDs spread out overtime so say every 3 or 6 months starting in a year or so you could have access to some of the money or if there is no need at the time reinvest in a new CD. 

if lets say I sign up for a CD today at todays rate of 2 % is that going stay the same for 5 yrs or can it go up and down ?

What is the best way to protect your saving from inflation ? that carries the least amount of risk 

I'm a starter so sorry for the stupid questions 

Appreciate the replies