Your Questions About Investing In Bonds

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John asks…

Straight job or going into investing etc?

Which is better of the above or is a mix of the two better. I am currently still in education and scared of having to work a straight job for years to come and was wondering if learning about investing, bonds etc is better than a straight job?

financi4 answers:

You need to open a TD-Ameritrade account and the trick is, do not invest until the market has crashed and done what is called “chart bottom”. All the stocks you watch are going to bottom as well. Www.stockcharts.com and www.clearstation.com

Joseph asks…

what is the differences between investing in stocks, bonds, mutual funds?

So, i’m new to investing.. I know the definitions of them; but i was just wondering what is the benefits or advantages or so for investing in each of these?

Like the earnings or so? If you have any advice on them; please let do tell me. Thanks.

financi4 answers:

To put it simply.
A stock is a chunk of a company, the value of the share depends on what the market thinks. Shares can go up or down.

A bond is a chunk of Debt, you aggree to pay for that chunk and after a period you get interest back.

A Mutual Fund is a company that invests money on your behalf into Stocks / Bonds / Other investments, in order to return you a profit.

They are experienced and educated in investing and should be utilised if you are not educated in shares or investing.

Michael asks…

Can I become a French citizen by investing in Government Bonds?

I heard that the UK allows that and you have to invest 1 m pounds. Not sure though.
Also, I heard that USA doesn’t allow that. You have to invest in a business and you have to actively manage it. Not sure also about that.

How bout in France?
Also How about in Italy?

I’m Spanish Citizen by the way.

financi4 answers:

The US has the EB-5 visa for an invest visa which lead to the Green Card

And the E-2 ..which does not lead to a green card

Steven asks…

What are bonds exactly? Investing 2.5 mil for annual interest.?

I’m thinking of certificate of deposit and savings account for like 3% annual interest. But some people mentioned to me bonds. What are they, are they safe, and how long is the learning curve?

I’m not interested in starting a business or stocks. Just safe measures without much or any maintenance, be it low amount of money.
many thanks! i think i’ll think about treasury bonds. if it’s the safest. of course, i’ll be talking to quite a few people about this.

financi4 answers:

There are many kinds of bonds including state, muni, government, corporate and James. Ok, the James Bond isn’t necessary an investment, but I thought it was funny.

So, actually, each bond has some inherit risk. Treasury Bonds are the safest of all bonds (unless the US gov goes BK), but have the lowest yield.

There is much one should know about bonds and this could be a book.

Bonds in general:
http://en.wikipedia.org/wiki/Bond_(finance)

Covered “Are certificate of deposit safe?”
here:
http://answers.yahoo.com/question/index?qid=20090620083706AA9iUR7&r=w#BaN_M2D0AnhGUqjJm65y

George asks…

How does one exactly make money by investing in stocks, bonds, mutual funds, etc?

Where does this increase in wealth come from specifically? Thank you

financi4 answers:

It’s all about buy low and sell high.
However most stocks keep on falling.
So it’s hard to find the good ones that can make you a good profit.

James asks…

Investing in Single Bonds as a Small Time Investor?

Is there anyplace where a small investor can buy bonds? And I don’t mean I-Bonds or any of those direct Government treasuries. But I mean Corporate Bonds that might be yielding 8% or 12%?? Can you buy just (1) Corporate Bond?

financi4 answers:

Of course. Many brokerages support this. However, it used to be that it was quite difficult for an individual investor to get a good deal on buying a bond (and difficult to even find out much about availability and prices). Recently this has gotten easier with the new MarketAxess system — Fidelity was one of the big adopters of this system. So if you’re interested in buying individual bonds in particular, before you select a broker first check out the extent of their bond tools and access to individual bonds.

However, it’s hard to diversify your risk as a individual investor in bonds, unless you have substantial funds, so bond mutual funds is still a better choice for most people. Plus it’s still just plain easier.

Http://www.bondsonline.com/News_Releases/news11260601.php

Charles asks…

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

financi4 answers:

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:

Robert asks…

I’m interested in investing in bonds?

I’m an 18 year old college student and I’m interested in investing in some bonds. Does anyone know how much the maturity is yielding right now? And should I invest on treasurydirect or should i go to a bank like bank of america? I am only interested in gov bonds as they are no risk. But I heard a bond with a 1000 face value is only yielding 10 dollars in interest for like a year, is this true?

financi4 answers:

Yes, they are yielding 1% so they are pretty much a waste of time. Why not use a short term bond fund from Vanguard or American Century? They take care of all the legwork and are much easier to buy and sell. Plus with very little risk they are yielding about 2.36% year to date.

Check out http://www.AmericanCentury.com and look for their short duration fund.

The thing about bonds is you never want to hold them for the full term, so bond funds let you move in and out with ease.

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