Here are the ten best short term investments right now for young investors looking to invest cash in the stock market or other place.
10 Different Ways To Start Investing With Just $1,000
You’ve likely heard that investing is important. You’ve probably hear that investing is the best way to grow your money over time. But what exactly is investing, and how do you get started? According to the dictionary, here’s the definition of investing. Investing: to expend money with the expectation of achieving profit or material result by […]
Investing Tip #313: Buy Floating-Rate Corporate Bonds
Floating-rate corporate bonds can give you better returns since they’re correlated to inflation.
Investing Tip #199: Invest in Tax-Free Bonds
The federal and the state governments issue tax-free bonds. The interest is not taxable. If you are in higher income brackets, invest and avail the benefits. Your effective rate of return increases substantially. Moreover, investments in these bonds are safe. If you want to learn more check out these resources: Buying Individual Bonds vs. Bond […]
Investing Tip #182: Remember The General Rule When Buying Bonds
Remember the general rule when buying bonds -“lower rating means higher risk and so higher returns.” Bonds are rated by credit rating agencies Moody’s, Standard & Poor’s and Fitch. Ratings indicate the investment grades and the risk associated with the issuer company and the bond issue. The ratings are based on the credibility, stability and […]
Investing Tip #158: Avoid Corporate Deposits
Though corporate deposits offer higher interest than banks, they are not safe and not secured. They are not liquid and you may have to sell them at a discount. Bonds are a better option than corporate deposits. If you want to learn more check out these resources: How to Build an Income Portfolio Do You […]
Investing Tip #150: Bonds are Not Efficient Instruments for Retirement Planning
Even though bonds have worked well over the long term does not ensure that they’re efficient for your retirement planning. Their nominal yield provides you less purchasing power due to inflation. Bond payouts are fixed. Post tax returns are even worse. If you want to learn more check out these resources: Buying Individual Bonds vs. […]
Investing Tip #134: Invest in Government Bonds when Yields are High
Bond yields and its market price move in opposite directions. High inflation and a high interest rate pushes bond yields up and brings down the bond price in the market. Investments in Government Bonds are free from default and provide reasonable returns, especially if invested when Bond Yields are high. If you want to learn […]
Investing Tip #130: Invest 10% of Your Portfolio in TIPS
Historically inflation is a reality and erodes your savings especially if invested in bonds and other fixed securities. The Treasury inflation-protected securities (TIPS) protects you investment against inflation and has the guarantee of the US treasury. Maturity value and interest rate are linked to Consumer Price Index (CPI). You can have a small percentage; say […]
Investing Tip #92: Pick Good Sovereign Bonds Abroad
You may invest a small portion of your capital in government bonds in a country with no fiscal deficits or trade deficits and a high savings rate. Pick good sovereign bonds abroad. This will provide you steady return and boost your portfolio’s risk-adjusted performance. If you want to learn more check out these resources: Buying […]
Investing Tip #75: Prefer Bonds with High Ratings
The rating companies, such as Moody’s, Standard & Poor’s and Fitch, provide ratings to the bond issues. The ratings that are dependent on the credibility, stability and financial health of the company, help you to determine the risk associated with the Bond. Buy only investment grade bonds having ratings from Aaa/AAA to Baa/BBB. Avoid high-yield […]
Investing Tip #31: Include Fixed-Income Securities in Your Portfolio
If you’re a conservative investor or are saving for a short term purchase you might want to include fixed income securities in your portfolio. Fixed-income securities such as bonds or, fixed deposits pay you a fixed rate of return. The interest on these may be paid periodically. As they provide an assured return on due dates […]
How You Can Use I Bonds as an Emergency Fund
You don’t need a financial adviser to tell you that one of the most important things you can do for yourself is to set up an emergency fund. Short-term lending options are pretty horrendous with everything from 300% payday loans to 25% credit card loans, so it makes sense to set some money aside for […]
Is Now the Time to Get Out of Dividend-Paying Stocks?
Unless you have been living under a rock the last several years, dividend-paying stocks have been all the rage and it is certainly understandable. With the way the Fed has kept rates low we have been hard-pressed to find somewhere to park money and make any decent return. The usual suspects of CDs, bonds, and […]
Is The Bond Bubble Going to Pop?
Bond prices have been rising steadily since the 2007 financial crisis. Many individuals, investors, companies, and institutions have been flocking to Treasury Bonds for their relative safety compared to other financial products. However, with the economy recovering more every day, and other securities, like stocks, starting to look more attractive, is the bond bubble finally going to […]
Buffett Backs off Municipal Bonds, Should You?
Berkshire Hathaway is known for its excellence in investing with Warren Buffett at the helm as Chairman and CEO. What Berkshire isn’t well-known for is the business it does best: insurance. Recently, Buffett’s Berkshire Hathaway cut its exposure to the municipal bond insurance market. Berkshire Hathaway previously insured billions of dollars of municipal bonds against […]
How to Start Minimizing 2012 Taxes
It seems like just yesterday we were filing our tax returns are wrapping up the 2011 year (unless you’re Mitt Romney, who still hasn’t filed his 2011 taxes). However, there is no better time than the present to start thinking about ways to minimize your 2012 taxes. Because we all hate paying taxes, and there […]
Are Bonds Better Than Stocks Right Now?
Over the last month, investors have still been flocking to bonds despite record low interest rates. In fact the average yield on bonds issued by Group of Seven countries (United States, Canada, Germany, U.K., France, Italy, Japan) has fallen to 1.23% as of June 12, from around 3% back in 2007. And for several countries […]
Are Your Savings Bonds Still Paying You Interest?
As investors seek alternative plans to grow their money in light of the volatile stock market, savings bonds have become one of many popular choices for long-term savings growth. Savings bonds increase the initial investment with an interest rate that is guaranteed by the federal government. However, given that they are an investment plan that […]
You Can Get Deals Like Buffett
All over the news, there has been talk of Warren Buffett buying preferred shares of Bank of America and getting a great deal that individual investors simply couldn’t get. And you’re right about one thing – Bank of America isn’t going to be calling up small investors any time soon and offering them preferred shares. […]
Building a Diversified Bond Portfolio
Everyone has heard the saying ‘you need to diversify’. You hear about it for your portfolio as a whole – diversify in stocks and bonds. There are even some handy simple calculations to figure out how to do it (subtract you age from 100, and that is how much you should invest in stocks). You […]