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I'm 18 and would like to know whether a government bond or a company bond would be a wiser investment.? |
I'm 18 and would like to know whether a government bond or a company bond would be a wiser investment.? Both would be bad for you. That is an investment for an institution. "Wise", as in, "I want a little more return for a tiny amount of risk, or "wise" as in, "I want the safest possible (zero risk by definition) investment"??? government is more secured, but you can make more with a corp bond Normally, (not ALWAYS) the younger you are, the more aggresive your investment strategies are. Meaning, a government bond, while being a safer investment, doesn't normally have a very high rate of a return. A corporate bond's rate of return will be determined by the credit worthiness of the company issuing it. Therefore, a company with strong financials and a proven track record will not pay the same rate of return as a newer, maybe fledgling company. Government bonds pay less than 5% interest. Corporate bonds pay higher rates, but they are riskier. if you want to start investing and want to become enthusiastic about it, there is nothing worse than buying bonds, especially, government bonds. at 18, buy stocks of a few very large companies, but only after doing some research. or buy some mutual funds, also after doing some research. the more you learn and know, the more interesting it will be to you. it helps to make some money , too. neither, gov. bonds are only paying about 3.6.. your better off purchasing stocks which will increase rapidly if chosen wisely. No. |
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Its depend on the terms and conditions attached to the bond. Bond is nothing but a loan to the company, so you are the creditor of the company. The bond deed (or Constitution, articles, Instrument... I bond ...Yes you do. The total return is comprised of the income provided by the investment (dividends and interest) and the capital appreciation (unrealized or paper gains). This gives you a picture of h... Saving in a bank or building society has little risk and also little reward, compared to the more riskier investements like Bonds, shares and funds. Gold on the other hand has seen a very steady cl... The least amount of risk is in a Money Market Fund and even then the rate of return fluctuates. The principal usually stays constant with Canadian Money Market Funds. The risk tends to rise with ... These links will help with what you're looking for: Wikipedia: 'Stock' ... Yes it is taxable, I'm not sure exactly what rate. ...Without knowing what the bond fund name (and ticker symbol) is, it's hard to give a good answer. Most of my bond funds - short term corporate, ginnie mae & inflation protected bonds have ... |
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