Before you start making bonds, you have to understand what you have to invest. Do not understand these things You may buy the wrong bond on the wrong maturity date.
The three most important things to consider when buying a bond include the par value, the maturity date, and the coupon rate.
The face value of a bond is the amount you receive when the bond reaches its maturity date. In other words, the bond matures to the initial investment.
The maturity date is, of course, the date when the bond reaches its full cost. On this day, in addition to your initial investment, you will receive the interest earned by your money.
Before they reach their maturity, companies and state and municipal bonds, companies and issuing governments, along with the interest it has earned so far, can return your initial investment Federal bonds can not be called " '
Coupon rate is the interest rate you receive when a bond reaches maturity. This number is written as a percentage and you need to use other information to find out what your interests are. Bonds that have a $ 2000 par value until they reach maturity, a 5% coupon rate can earn $ 100 a year.
Because bonds are not issued by banks, many people do not understand how to buy. There are two ways in which this can be done.
You can use a broker or broker to make a purchase for you. If you use a securities company, you will be charged a fee for the above possibilities. If you want to use a broker, shop around for the lowest fee!
Buying directly through the government is not as difficult as it used to be. You can buy bonds and all of your bonds will be easily accessible to you, in one account This can avoid the use of brokers and brokers You
[Site service resource box here]
Importance of diversification
"Don't put all of your eggs in one basket!" You've probably heard over and over again throughout your life ... And when it comes to investment, it's very true is. Diversification is the key to successful investment. All successful investors build a widely diversified portfolio, and you too!
Diversified investments etc. have a wide variety of purchases in many different industries. In addition, we also carry out some financial market fortunes that invest in purchased bonds. Not just one – the key is to invest in several different areas.
Over time, research has shown that investors who are diversifying their portfolios are usually more consistent in their investments than those who invest in just one thing, by investing in multiple different markets It is also actually at less risk.
For example, if you are investing all of your money in one share, and that share takes a considerable plunge, most likely you invest your money while you invest in ten different stocks And while nine is doing well, you are still in a reasonably good shape.
Good diversification usually involves stocks, bonds, real estate, cash. It may take a long time to invest. Depending on how much you need to invest first, you need to start with one type of investment and invest in other areas over time
This is fine, but if you can divide your initial investment funds among various types of investment, you risk losing your money
Even with experts, we invest the same investment money in our customers. In other words, if you start with $ 100,000 to invest, you invest $ 25,000 in stocks, $ 25,000 in real estate, $ 25,000 in bonds, and $ 25,000 in interest holding a savings account.
[Site service resource box here]
0 comments:
Post a Comment