Investment

Know two things about risk before investing in a bond: your individual risk tolerance and the risk inherent in the instrument (via its rating). Consider the maturity date of a bond and whether the issuer has the option to call it in before it matures. Is it clear that the issuer will be able to […]

A bond is just a debt that a firm takes out. Rather than going to a bank, the company obtains funds from investors who purchase its bonds. The corporation pays an interest coupon in exchange for the capital, which is the annual interest rate paid on a bond stated as a percentage of the face

The interest payments on 10-year Treasury notes and other federal government securities are tax-free in all 50 states and the District of Columbia. They are, however, nevertheless taxed at the federal level. The US Treasury offers 10-year T-notes and shorter-term T-notes, as well as T-bills and bonds, directly through the TreasuryDirect website via competitive or

A bond is just a debt that a firm takes out. Rather than going to a bank, the company obtains funds from investors who purchase its bonds. The corporation pays an interest coupon in exchange for the capital, which is the annual interest rate paid on a bond stated as a percentage of the face

The best thing you can do is put your money to work for you again. Reinvest your bond proceeds in the stock market after you’ve cashed them in. Your bonds are likely underperforming the average annual stock market return if they are less than 30 years old and still collecting interest. Bonds, on the other

If you hold Series E or EE bonds released after 1974, you can use the Treasury Hunt tool to determine if any bonds registered with your Social Security number have stopped paying interest. If your savings bonds have reached maturity, you should cash them in and invest the proceeds elsewhere. Whether you have paper bonds,

Looking for a holiday gift that will assist a young person in getting on the correct financial track? A savings bond or a deposit to a 529 account is unlikely to be the most popular gift on Christmas morning, but it could be the most treasured. Parents, grandparents, and other interested adults can provide financial

The oldest and most well-known bond alternative is real estate investment trusts (REITs). This investment vehicle was established in the 1960s to let non-accredited investors to invest in funds that manage a portfolio of properties, which were previously exclusively available to accredited investors. Most investors do not have the funds to make several down payments,

A bond is just a debt that a firm takes out. Rather than going to a bank, the company obtains funds from investors who purchase its bonds. The corporation pays an interest coupon in exchange for the capital, which is the annual interest rate paid on a bond stated as a percentage of the face

In about 30 years, most savings bonds stop earning interest (or achieve maturity). A savings bond can be redeemed as soon as one year after purchase, but it’s normally best to wait at least five years so you don’t miss out on the last three months of interest. If you redeem a bond after 24