6. Investing in municipal bonds

Municipal bonds are a low-risk, tax-advantaged way to invest in the bond market. They can provide income while also helping you achieve your long-term financial goals. Municipal bonds are issued by state and local government entities and are generally considered to be low risk since the issuer has the power to raise taxes if necessary. This can make them attractive for those looking for safety in their investments. Additionally, the interest paid on municipal bonds is exempt from federal taxation, which can reduce your overall tax burden.

7. Treasury Inflation-Protected Securities (TIPS)

TIPS are a type of bond issued by the federal government. They offer protection against inflation, as they adjust their interest rates according to the rate of inflation. As such, they are a low risk investment option that can provide consistent returns over the long term.

8. Real estate investment trusts (REITs)

REITs are a low-risk way to invest in real estate. They offer the potential for income and capital appreciation, as well as diversification of your portfolio. They are also highly liquid, making it easy to sell and buy shares of a REIT, even during volatile market conditions. While there is risk associated with investing in REITs, they tend to be low compared to other investments such as stocks and bonds.