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How do you explain and describe in simple English the risks associated in investing in bonds?
Investing in Bonds is even more volatile than investing in individual stocks. Unless you are a genuine expert, (I can tell from here that you are not), don't do it. Cheers
How are bonds taxed?
The income from bonds is taxed, unless the bonds are exempt from federal tax (municipal bonds) and/or state tax (varies by state). If there is gain on the sale of a bond (you receive more than you originally paid for it), the gain is taxable.
Why Municipal Bonds Are An Attractive Investment?
Municipal bonds are bonds issued by local governments or their associated agencies to raise money for particular projects. Most often, municipal bonds are issued to build roads, schools and to complete projects such as sewer systems. These bonds offer the bond holder payments of interest over a certain period of time as well as the return of their initial investment. One of the factors that make municipal bonds an attractive investment is the tax exempt status they carry. Interest payments to the bond holder will not be taxed on the federal level and most state and local municipalities will waive the taxes on a local bond. While the interest rates paid on municipal bonds is always lower than other bonds on the market, the tax exempt status outweighs this negative aspect. Another factor to consider is risk. More often than not, municipal bonds have a very low risk associated with their purchase. This is a safer choice when looking into long term investment options. Most bonds are repaid in 20 -40 years. Bonds are rated before they are issued and those with the highest ratings will be the most likely to pay their debt when it is due. Many investors prefer municipal bonds to corporate bonds. Bonds of both types, issued for the same amount, do not produce the same amount of income. Because corporate bonds are heavily taxed a municipal bond will always pay the bond holder more in the long run. Municipal bonds can be purchased directly from the office issuing the bonds at the initial offering or later from a bond holding company. Bond issuing companies are required to use the money within 5 years of issuance to begin the project for which they raised the capital. If the project is cancelled or fails to begin on time, bonds will be repaid with interest and cancelled. Because of the many guarantees that are associated with municipal bonds investors like to stockpile them in their portfolios for the long term. When considering a long term investment a local bond offering may be the correct choice.
Tax Free Municipal Bonds Are More Secure Than Other Investments?
When you are looking for a low risk, long term type of investment municipal bonds is the first place you should investigate. Tax free municipal bonds are bonds issued by local and state governments and their associated entities. These bonds guarantee the return of your investment in a specified number of years along with interest. These bonds have an additional bonus attached to them. The profits you make from the money are tax free. The IRS has instituted this policy in an effort to have investors place their money into government programs. These bonds are issued so government authorities can pursue local infrastructure projects. When you invest in tax free municipal bonds the interest rate you make will be slightly lower than on corporate bonds. This should not be a deterrent. The tax free status of the bonds more than compensates for the lower interest rate. Profits made from corporate bonds carry a high tax burden. This type of investment is considered a long term investment. Municipal bonds generally carry a 20 – 40 year return rate on their purchase. Some bonds may be short term, but these are hard to find. Municipal bonds can be purchased directly from the organization issuing the bonds at the initial offering or through a bonds broker. Government regulations require that the agency issuing the bonds begin the intended project within 5 years of issuing the bonds. If, for some reason, this deadline cannot be met, the agency will return your investment plus interest. At that time they may issue another bond offering. Diversifying your investment portfolio is critical to its success. You should never place all your investments into one type of stock or bond or place all your money into one risk factor. You must, as a responsible investor, diversify your portfolio with low and high risk investments to ensure a good outcome. Municipal bonds are a great way to add a long term low risk balance to your portfolio.
Where can one find more information about foreclosure investing?
To find good information about Foreclosure investing, go talk to a bank. Banks no everything about investing, and can answer any questions you have on the subject. Also, go find a Foreclosure representative. He can help you with finding good information.
How am I suposed to help with municipal bonds investing?
First, you should familiarize yourself with municipal bond investing. "The Bond Book" by Annette Thau can assist you in learning more about bonds. Once you have more information about the topic, helping your agent should be less overwhelming.
What are the benefits of investing in municipal bonds versus collecting interest at a bank?
The rate of interest offered by Bonds is marginally more than the interest offered by Banks.
Can you find something about investing in bonds in the internet?
If you want to get more information on investing in bonds you could visit websites such as Investing in Bonds, Money, Market Watch and also Black Rock.
where can I find out more about Municipal Bonds ?
Get in touch with Bondtrac fo rmore helpw ith municipal bonds. Thier web portal is at www.bondtrac.com/ .
Where can I learn more about municipal bonds?
On the MunicipalBonds.com website there is an Education page dedicated to information about Municipal bonds. They have a FAQ section and definitions that you might find helpful.
What is the muni bond market, and does it have anything to do with finance?
The municipal bond market is related to the investment in government bonds. You can find out a lot more information about municipal bonds by checking out Investopedia.
How can I learn about the muni bond market?
Municipal bonds are a little more complex than other bonds. You can find out more information about getting one, and the benefits by going to the Investopedia website.
How do municipal bonds compare to bank CDs as an investment?
Municipal bonds vs. CDs as a investment is municipal is free but Cds earn more a an investment overt time. The better choice would be to have a bank CD account.
How do you explain and describe in simple English the risks associated in investing in bonds?
Investing in Bonds is even more volatile than investing in individual stocks. Unless you are a genuine expert, (I can tell from here that you are not), don't do it. Cheers
Are government agency bonds more liquid than municipal bonds?
No and Yes, Their are liquid and illiquid issues in both
Where can a person get tips on buying bonds?
Buying bonds remains a low-risk investment sought after by many. To find more information on buying bonds, try the Treasury Direct website. Investing in Bonds is another online source of free information.
What benefits does bond investing have?
It is much safer investing in bonds because they are more secure. If you were to invest in stocks you are taking the chance of perhaps loosing some or all of your investment.
