Preservation of Capital
What is Preservation of Capital?
How Does Preservation of Capital Work?
A preservation of capital is a conservative investment philosophy that invests in very safe securities, such as Treasuries (T-Bills), which will not lose any value and only gain enough to counter the effects of inflation.
Preservation of capital is usually used by investors on fixed incomes, retirees who are not adding to their investment principal and cannot risk any losses, or institutions or organizations with limited endowments.
Why Does Preservation of Capital Matter?
Preservation of capital is an important investment philosophy at the right time and for the right type of investor. It recognizes the needs of the investor to maintain his or her capital, protecting against any volatility in the markets, and ensuring that capital is available when it is needed, usually in the short term.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.