The Money Farm Team

Bonds are still significant today because they generate consistent income and protect portfolios from risky assets falling in value. If you rely on your portfolio to fund your expenditures, the bond element of your portfolio should keep you safe. You can also sell bonds to take advantage of decreasing risky asset prices. Are bonds safe […]

Bonds are still significant today because they generate consistent income and protect portfolios from risky assets falling in value. If you rely on your portfolio to fund your expenditures, the bond element of your portfolio should keep you safe. You can also sell bonds to take advantage of decreasing risky asset prices. Is it a […]

Bonds are still significant today because they generate consistent income and protect portfolios from risky assets falling in value. If you rely on your portfolio to fund your expenditures, the bond element of your portfolio should keep you safe. You can also sell bonds to take advantage of decreasing risky asset prices. Are bonds safe […]

Bonds are a prudent strategy to hedge your stock investments that are dropping in value. Bonds and stocks are inverse securities, which means that if the value of your stocks declines, the value of your bonds rises. The interest payments will help to alleviate the pain of your stock losses. Municipal bonds that are tax-free […]

They have a better yield than cash and are safer than most other asset groups. Shorter-term bonds have less interest rate risk if you don’t want to buy interest-rate sensitive bonds (offset by lower yields). Higher-yielding bonds are also available if you’re comfortable with the risks associated with them. Is it safe to invest in […]

Treasury bonds can be an useful investment for people seeking security and a fixed rate of interest paid semiannually until the bond’s maturity date. Bonds are an important part of an investing portfolio’s asset allocation since their consistent returns serve to counter the volatility of stock prices. Bonds make up a bigger part of the […]

Municipal bonds (sometimes referred to as “munis”) are fixed-income investments that offer better after-tax returns than comparable taxable corporate or government issues. Interest paid on municipal bonds is generally excluded from federal taxes and, in some cases, state and local taxes as well. Which municipal bonds are free from taxes? Bonds issued by corporations. At […]

Liquidity in financial markets refers to how soon an investment may be sold without depreciating its value. The more liquid an investment is, the faster it can be sold (and vice versa), and the more easily it can be sold for a fair price. More liquid assets trade at a premium, whereas illiquid assets trade […]

The Treasury Department will redeem savings bonds by mail, sending you a government check for the bond’s face value. To cash a bond using this approach, you must first go to a bank — any bank — and have your identify validated by a bank official on the bond. You can take a large-value savings […]

Ratings firms investigate each bond issuer’s financial condition (including municipal bond issuers) and assign ratings to the bonds on the market. Each agency follows a similar structure to enable investors compare the credit rating of a bond to that of other bonds. “Investment-grade” bonds have a rating of BBB- (on the Standard & Poor’s and […]