Capital Preservation
InvestingGlossary term
Definition
An investment strategy focused on protecting the principal value of an investment rather than maximizing growth. Common vehicles include Treasury bonds, CDs, and money market funds. Most appropriate for investors near or in retirement.
Related terms
- Treasury BondA long-term (20-30 year) debt security issued by the US government. Considered one of the safest investments, pays interest semi-annually. Used to benchmark other interest rates.
- Risk ToleranceYour ability and willingness to lose some or all of your original investment in exchange for potentially greater returns. Depends on factors like age, income, and financial goals.
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