Bonds

The rule of thumb that advisors have typically recommended investors to employ in terms of the percentage of stocks an investor should have in their portfolio; for example, a 30-year-old should have 70% in stocks and 30% in bonds, while a 60-year-old should have 40% in stocks and 60% in bonds. What percentage of my […]

Create an asset allocation strategy and start implementing it. According to the American Association of Individual Investors, each investor’s demands are unique, but your assessment of your financial status will generally place you in one of three groups. You are most likely an ambitious investor if you have at least 30 years until you reach

The rule of thumb that advisors have typically recommended investors to employ in terms of the percentage of stocks an investor should have in their portfolio; for example, a 30-year-old should have 70% in stocks and 30% in bonds, while a 60-year-old should have 40% in stocks and 60% in bonds. Is it really necessary

Treasury yields can rise if the Federal Reserve raises its federal funds rate objective (i.e., tightens monetary policy), or even if investors just expect the fed funds rate to rise. What does an increase on the 10-year Treasury mean? Treasury securities are federal government loans. Maturities can range from a few weeks to more than

According to one theory, your stock portfolio should have a ratio of equities equal to 100 minus your age. So, if you’re 30, your portfolio should consist of 70% stocks and 30% bonds (or other safe investments). If you’re 60, your portfolio should consist of 40% equities and 60% bonds. What is the best stock

The Federal Reserve, as America’s central bank, is in charge of regulating the dollar’s money supply. The Fed creates money by conducting open market operations, or buying securities in the market with new money, or by issuing bank reserves to commercial banks. Bank reserves are subsequently multiplied through fractional reserve banking, which allows banks to

Municipal bond interest is tax-free in the United States, however there may be state or local taxes, or both. Be aware that if you receive Social Security, your bond interest will be recognized as income when determining your Social Security taxable amount. This could result in you owing more money. Municipal bond interest rates are

If the purchase price of a bond is equal to its par value, the coupon rate is equal to the yield to maturity. A bond’s face value, or stated value at the time of issuance, as established by the issuing corporation, is its par value. The majority of bonds have a $100 or $1,000 par

Treasury bonds are often regarded as one of the safest investments in the world, if not the safest. They are deemed risk-free for all intents and purposes. (Note that they are risk-free in terms of credit, but not in terms of interest rate risk.) Bond prices and yields are usually compared to those of US

Treasury bonds are often regarded as one of the safest investments in the world, if not the safest. They are deemed risk-free for all intents and purposes. (Note that they are risk-free in terms of credit, but not in terms of interest rate risk.) Bond prices and yields are usually compared to those of US