The Safest Way to Invest: Government Bonds

Government bonds are often considered to be the safest type of investment. 
Unlike stocks, which can rise and fall in value based on the performance of the company, government bonds are backed by the full faith and credit of the U.S. government. This means that, as long as the government is able to make its interest payments, your investment will be safe.

There are two types of government bonds: treasury bonds and agency bonds. Treasury bonds are issued by the federal government and are backed by the full faith and credit of the United States. Agency bonds are issued by quasi-governmental organizations, such as Freddie Mac and Fannie Mae, and are backed by the full faith and credit of the United States government.

Both types of government bonds are considered to be safe investments.
However, there are some risks associated with investing in government bonds. The most prominent risk is interest rate risk. Interest rate risk is the risk that interest rates will rise and your bond will lose value. Another risk is credit risk. Credit risk is the risk that the issuer of the bond will not be able to make its interest payments or repay the principal when the bond matures.

Before investing in any type of bond, it is important to consult with a financial advisor to determine whether or not a particular bond is right for you.