Investment Type Risk Level Average Returns Liquidity Best For High-yield savings accounts Low 3.5% to 4.5% High Short-term savings Money market accounts Low 3.5% to 4.5% High Short-term savings when check writing is needed CDs Low 3.5% to 5% High Short- or medium-term savings Treasury bonds Low 4.75% to 4.87% High Long-term fixed income Corporate bonds Medium 4% to 5.5% (over 10 years) Varies Capital preservation Dividend stocks Medium 11.57% (10-year annualized) High Income investing Index funds Medium 13% to 18% High Broad market exposure Mutual funds Medium 8% (20-year average) High Exposure to specific market segments Real estate investment trusts (REITS) Medium 5.09% (20-year average) High Hedge against stock volatility Individual stocks Medium-high 13% (10-year average) High Growth…