Some investments have a reputation for being rock solid, the kinds of things you can park your money in and forget.

But in 2025, a few of these “safe” bets could actually be working against you. Don’t get caught off-guard!

Here’s what to watch out for and what you can invest in instead to get what you’re really after.

What they are: Cryptocurrencies pegged to a stable asset, usually the U.S. dollar. If you hear “crypto” and assume “massive risk”, this is different!

Why people think they’re safe: They are meant to hold a steady value of one dollar, with strong backing of real dollars, making them less volatile than other crypto.

Why they might be risky now: Not all are backed by real money. TerraUSD’s collapse in 2022 erased billions in value.

Better alternative: Use regulated, fully-backed stablecoins like USDC for short-term digital cash needs, or or just put it in a savings account.

What they are: Bank savings accounts that pay higher-than-average interest.

Why people think they’re safe: FDIC insurance protects deposits up to legal limits and balances don’t fluctuate. Plus, these days the interest can be over 4%!

Why they might be risky now: Inflation can cancel out gains. If inflation is 3 to 4% (it was over 8% in 2022!) and your HYSA pays 4.5%, your real return is near zero.

Better alternative: Keep three to six months of expenses in a HYSA for emergencies, and invest extra cash! If you still want to keep it fairly low risk, look at balanced ETF portfolios like Vanguard LifeStrategy Moderate Growth Fund (VSMGX) or iShares Core Growth Allocation ETF (AOR).

What they are: Companies that own and manage income-producing real estate, paying out most of the profits as dividends.

Why people think they’re safe: People looooove real estate.

Why they might be risky now: Office-heavy REITs are still struggling from fewer people renting offices and more people working in sweatpants (me).

Better alternative: Diversified REIT ETFs like Vanguard Real Estate ETF (VNQ).

What they are: Loans you make to the government, often 20 or more years long.

Why people think they’re safe: Governments rarely don’t pay back money you lend them and bonds pay predictable interest.

Why they might be risky now: Bond prices fall when interest rates rise, and long-term bonds get hit hardest. In 2022, the iShares 20+ Year Treasury Bond ETF (TLT) dropped over 30% and hasn’t really recovered.

Better alternative: Short-term Treasury ETFs like SHV or BIL, which are less sensitive to rate changes and are currently yielding around 4.5 to 5%. Kind of like lending money to the government, but only for lunch instead of a lifetime.

What they are: Funds that track a stock market index like the S&P 500 (the big dawg).

Why people think they’re safe: They give instant diversification across hundreds of companies.

Why they might be risky now: Many U.S. index funds are heavily tilted toward a few massive companies. The S&P 500’s top seven companies (The Magnificent 7) make up almost 35% of the index. That’s like calling it a “fruit salad” when it’s actually mostly honeydew melon (no thanks).

Better alternative: Global or equal-weight funds for broader diversification, such as Vanguard Total World Stock ETF (VT) or Invesco S&P 500 Equal Weight ETF (RSP).

Safe investments still have a place, but “safe” does not mean risk-free.

The key is matching your money to the right tool for the job: stability when you need it, growth when you want it, and a clear plan for both.