Investing for Beginners – How to Invest in Bonds Part 4 (For Dummies)
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This video tutorial covers the fundamentals and basics of buying, picking,& investing in bonds and the bond market. If you’re plotting the path to a stable financial future, you may want to consider investing some of your money in bonds. There are two good reasons to buy bonds. One, is to receive steady income that has a good chance of beating inflation. The other is to diversify your investments. When you buy a bond, you loan money to a company or a government entity. In return, the borrower commits to paying you for the loan in two ways: • Pay you interest, at a fixed rate, for the life of the loan, and • Repay you the value of the loan by a certain date, known as the maturity date. If you are thinking of buying a bond, consider some of the following questions: • How much will you earn? To answer this question, you should learn about the different types of bonds you can buy. • When will you be paid the interest? • How long is the loan? • How reliable is the borrower? • How much do they want to borrow/invest? To answer these questions, you should learn about the different types of bonds you can buy. Types of Bonds You may have heard of “junk bonds.” Companies issue these, and they generally offer a high interest rate. However, they’re risky, because financial analysts have doubts about the financial health of the company issuing them. If the company gets into trouble, you may not get your money back. Therefore, to achieve your goal of financial stability, you should consider investing in less risky types of bonds. These are bonds issued by either the federal government or state or local governments (known as municipal bonds), or highly rated bonds
www.baystateproperty.com – Check out my non-profit real estate website, where you can find innovative articles, the latest deals on the market, & insider tips.
Follow me on Twitter GIVE SUGGESTIONS AND THE LATEST VIDEOS PLEASE SUPPORT @RealEstateEd1
This video tutorial covers the fundamentals and basics of buying, picking,& investing in bonds and the bond market. If you’re plotting the path to a stable financial future, you may want to consider investing some of your money in bonds. There are two good reasons to buy bonds. One, is to receive steady income that has a good chance of beating inflation. The other is to diversify your investments. When you buy a bond, you loan money to a company or a government entity. In return, the borrower commits to paying you for the loan in two ways: • Pay you interest, at a fixed rate, for the life of the loan, and • Repay you the value of the loan by a certain date, known as the maturity date. If you are thinking of buying a bond, consider some of the following questions: • How much will you earn? To answer this question, you should learn about the different types of bonds you can buy. • When will you be paid the interest? • How long is the loan? • How reliable is the borrower? • How much do they want to borrow/invest? To answer these questions, you should learn about the different types of bonds you can buy. Types of Bonds You may have heard of “junk bonds.” Companies issue these, and they generally offer a high interest rate. However, they’re risky, because financial analysts have doubts about the financial health of the company issuing them. If the company gets into trouble, you may not get your money back. Therefore, to achieve your goal of financial stability, you should consider investing in less risky types of bonds. These are bonds issued by either the federal government or state or local governments (known as municipal bonds), or highly rated bonds
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