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ARE PREMIUM BONDS A GOOD INVESTMENT,TELL ME WHAT YOU ALL THINk? |
ARE PREMIUM BONDS A GOOD INVESTMENT,TELL ME WHAT YOU ALL THINk? Yes its a good way to invest a few thousand - Although their are better areas it is not good to put all your eggs in one basket. Premium bonds can be a good investment , if you are lucky enough to win a reasonable amount, however the drawback is that they don't attract interest. So if you invest say 拢1000 today do not win any thing and decide to take your money out in 10years time you get back 拢1000. What do you think 拢1000 will buy in 10years compared with 拢1000 today? If you put your money into some sort of savings account you would be guaranteed some sort of return. Do you feel lucky? |
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The 10yr Bond rate was expected to fall to under or near 4.00%. Of course, just a couple of weeks ago that didn't seem possible. The Federal Reserve was also supposed to cut rates on money too... right now they are the safest thing out there besides a federally insured savings account. I also kinda like the idea of putting funds in a european bank and converting the funds to Euros. Like th... The answer to your question depends on a couple of factors, such as your age now and how much risk your willing to accept. In turn one would need to know where you want to be "financially"... it's lending money to government or corporate, low risk. bonds to local government is call municipal bonds, all interest you earn are tax free, both federal and state, but you have to pay a fe... Very safe, They pay low interest, but the interest usually isnot subject to fed income tax. because of that, they are attractive to those in high tax brackets. ...With bonds, there is an inverse relationship between the price and the interest rate. When the price is low, the interest rate is high and vice versa. So, during times of higher interest rates, yo... Abandoning bonds completely in rising rate environments is not a good idea with respect to long term asset allocation. Simply shorten the duration on your bond holdings. The shorter the duration of... Is it possible? Sure. Can any individual investor purchase them, nope. You would need to be an Accredited Investor if you wanted to purchase them. They usually carry a face value of $25,000 or ... |
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