How does it work if you're investing in bonds?? and is it a good time now??

Question

How does it work if you're investing in bonds?? and is it a good time now??

Answer 1

Investing in bonds is easier online but it depends on what you're going to invest in. U.S. savings bonds, corporate bonds, municipal bonds? There are many different types of bonds depending on their rate of return and risk, and taxes. U.S. savings bonds are risk-free but offer lower return than others. Junk bonds are corporate bonds issued by the company that offers high interest rates but their risk is very high. You might lose some of your money in junk bonds.

Make sure you read the fine print before buying, some bonds may be calleable meaning that the bonds are paid back before their maturity date.

Bonds can work in that they can pay you interest yearly or semi-yearly. Though taxes can be problematic.

I don't know if it is a good time to start buying but personally most bonds don't make past the inflation rate & taxes.

Here are some websites regarding bonds and some information:

Answer 2

Bond is a fixed income investment, so investors would get fixed income every month. It is good when you expect the interest rate would decline.

Answer 3

It depends.... as a long term investment, holding the bonds to maturity, as part of a well thought out "asset allocation"... a good idea for many.   For "investment" purposes to cash in when you want to.... could be dangerous.  Bond prices go down as interest rates go up. the longer the term of the bond, the more it will lose value.  Most professionals agree that over the next few years (or sooner) bond interest rates will go up (therefore, value goes down).

Bottom line: Either learn about this stuff or seek the help of a professional.

Answer 4

Bonds have a low return on them. If you invest in real estate you will bet a much BIGGER return along with all the deductions each year. 1-888-292-0704 or email me for more information.