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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.

At 18, you should open an IRA and invest in mutual funds. Over long periods of time, stocks always beat bonds. And you have a lot of time for your money to grow.

If you were 50, then you could invest in bonds and I would recommend a high grade corporate bond over a high grade gov't bond.

"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"???

Zero-risk = govt. bond
Little risk, but only slightly higher yield = corporate bond.

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.

Rate of return is based completely on perceived risk. Riskier investment = higher rate of return, less risk = lower rate of return.

Because you are young, you still have plenty of time to work and make money should you lose some in an investment loss.
Therefore, most financial planners would recommend you invest more aggressively.

Government bonds pay less than 5% interest. Corporate bonds pay higher rates, but they are riskier.
At your young age, you should look to the stock market for long-term investments. If you invest in a stock mutual fund, like ones that follow the S & P 500, you can expect an average rate of return at 9% to 10% over five years or more.
The stock market is starting to go through a correction right now, so wait and watch the S & P 500 numbers to see what happens over the next one to two months.

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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