Bonds investment?

Is it safe to buy bonds? How do bonds work? If I have money sitting in the account, is it better to put the in bonds or mutual funds?

Bonds are loans. A government or company borrows money from you, and promises to pay you a certain rate of interest, then pay you back in full at a certain date.

Bonds can run from very safe (short term us government bonds, known as t-bills - very high credit) to very risky (long term "high yield" or "junk" bonds - very low credit)
The general rule of thumb is the shorter the bond and the better the credit, the lest interest you will be paid.

If you have money in an account, and wish to invest it, but you want to have it available to you immediately, your best bet is put it in a money market fund. If you can wait for 3-6 months, put it into a CD (certificate of deposit). Both are insured up to $100k.

If you are looking to invest on a longer time horizon than a year, consult with a investment professional who can look over your specific situation and make good recommendations

mostly it depends on where you are in life..................read a couple of books on investing...............

Tags

　　Business Investment 　　Business financing 　　Business Invest 　　Business Debt 　　Bond Investment 　　Angel Funds 　　Alternative Investment

Related information

How should I divide my investment (bonds/equity)?

Common wisdom is that bonds add stability to ones investments. Also common wisdom is that as one grows older one should increase ones exposure to bonds. If you check out Fidelity's Life Cycl...

Bond Investing?

First response is relevant if you are okay with a bond fund, but to roll your own, you will need to do a bit of research. First, decide how much risk you are willing to take, and that will tell yo...

Which are a better investment, I bonds or E bonds? Are bonds the best way to go as a 32 year old.?

It all depends upon what you are trying to accomplish. If you are trying to put money away for something that will happen in under 5 years it is advisable to keep your money in something that prese...

Bond ratings?

Investment grade bonds have a high probability (higher than kung bonds) of repaying the principal at maturity, i.e. the company issuing the bond not defaulting. The coupons (interest rate payments)...

Explain why bond prices might decline when stock prices rise?

Bond prices often decline as a result of lower interest rates. For example, if bond interest rates fall from 5% to 4% on a $1000 coupon bond, the bondholder will only recieve $40 per year versus th...

How much would taxes be on a $10000 US Savings Bond?

Nothing if you have been claiming the interest earned all along, or at most the current year's interest. If you have not been claiming the interest annually then the difference between what y...

I want to know about share, real estate, bonds,etc. investment types?

A good introductory book on the subject is "Investing for Dummies". Your library may have a copy. It is available at your local book store or from Amanzon. There are other such books ...

Which is the best investment, stocks & bonds or the age old commodity-real estate?

All have their good and bad points. Diversification is the key. Don't put all your eggs in one basket. If you want an opinion, I'd shy away from real estate for the moment. The investors ...