Investing Like A Pro
Free Investment Information, Articles!
Better Sales Article:
Pros & Cons of Investing in Bonds
What are Bonds?
A bond is a debt security, by which you are lending money to a government, municipality, corporation, federal agency or other entity known as the issuer. In return for investing in the bond, the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it becomes due.
Why Invest in Bonds?
It is always prudent for an investor to maintain a diversified investment portfolio consisting of bonds, stocks and cash in varying percentages, depending upon individual circumstances and objectives. Bonds help you to diversify your portfolio, thereby, reducing your risk exposure.
Investing in bonds provides a predictable stream of income and repayment of principal.
Bonds maturing within three to five years will hold on to the value that they are worth. They offer some protection against stocks related losses in a portfolio.
The negative side of investing in bonds:
All investment products have drawbacks. Bonds are no exception. Some of the negative aspects of investing in bonds are:
Most bonds have a call option. This gives the issuer the right to call back the bonds held by investors generally after five to ten years. When the issuer calls back a bond, it pays your principal back along with the accrued interest and perhaps, a small premium. Issuers adopt this strategy when they can obtain money at interest rates lower than that of the bond in question.
When interest rates go up, the price at which the bond can be sold goes down. If you are forced to sell the bond due to pressing circumstances, you may not back the entire amount invested resulting in losses.
Long-term bonds can tend to be volatile and can somtimes fail to keep up with inflation.
Read More Free Investment, Wealth Creation & Personal Finance Articles & Tutorials at: http://www.global-investment-institute.com
The Global Investment Institute has been setup to aid people in the pursuit of a better lifestyle through managing their money effectively, investing wisely and wealth planning for their future.
Related Investing News and Articles From ezinearticles.com
Have you ever thought about playing the stock market? Many of us dream of hitting it big by investing $100 and earning $100,000 within a few years. But the system doesn't work that fast.
The 1935 Silver Certificate is one of the most popular notes among currency collectors. The history of these fascinating bills extends back to the 1800's. It was the Congressional Acts of 1878 and 1886 that authorized the printing of Silver Certificates - for a very specific reason.
If you have been following the news then you probably know that we are in an economic crisis of global proportions. Banks are collapsing, the housing market is in a bad way, and the economy is in a bad state.
You have $1 million that you want to invest, but you're not quite sure how you're going to do that. You don't want to lose everything, but you really want that money to grow. You want that $1 million to turn into $2 million and so on.
When attempting to compound money, the key is not spending your profits. This is a problem that occurs when individuals are trying to make their money grow for them. They simply cannot seem to hang onto their profits.
You Can Own This Website!
This website is an example of a new product called article site manager developed especially for people who wish to own Adsense sites or sites to promote their own websites and products but do not have the technical ability to own or maintain a website.
Details about this site and other article sites in different categories can be found at the link below. Prices start at $259 for a complete website like this!
Related Investing Articles:
Building The Foundation For Wealth
You wouldn't build your home on anything less than a solid foundation. Similarly, you can't build wealth and financial independence without first having sound foundational principles to build upon.
Not long ago I was laying on my son's floor throwing one of his toy balls back and forth in the air to myself and I had a strange revelation. I noticed that as I threw the ball up in the air my left arm automatically started to move to where the ball was going to come down. At the time I was pretty amazed at the fact and decided to experiment a little.
Firing an employee seems to be easier and easier for corporations. Up until now you allowed them to set your clocks. Now its time to fight back! Beat them at their own game. They had your future pegged. Now your certainty is in your own hands.
An Investment Real Estate Strategy Unknown To Most Is A Negative Amortization Loan
If you want to make the most of your personal or investment real estate, you should consider a negative amortization loan. Mortgage amortization is basically mortgage balance reduction. Consequently, when a mortgage has negative amortization, the loan balance not only is not reduced, it actually grows. So, why should you consider this? Simple. It is a great way to invest money from real estate someplace else.
Poll Names Coin Laundries Best Investment For 2005
According to Morton Pollack, CEO of PWS, The Laundry Company and editor of the newsletter, "Historically, laundry owners have been a quiet group. Knowing they are onto a good thing, they've been pretty reticent. However, many now agree that it's time for respect to paid to this powerful investment vehicle and we hope the poll will play a part".