What Interest Rate Do Bonds Pay?

If an investor is thinking of investing in bonds, the first rule to learn is: a bond is nothing more than a debt instrument, a loan. Think of buying a bond like making a loan to a corporation, government, federal agency or other organization. Bond issuers understand that investors are not going to invest without [...]

By | 2018-03-15T07:59:37+00:00 January 10th, 2018|Bonds|

Are Municipal Bonds Really Tax Free?

Municipal securities, also known as "munis," are bonds issued by governmental entities such as states, cities, counties, and other organizations. The bonds are sold to raise money for public interest projects such as schools, bridges, roads and other municipal construction needs to benefit the public. Like all bonds, munis pay a specified amount of interest [...]

By | 2018-03-15T08:04:11+00:00 January 3rd, 2018|Bonds|

Three Things To Know Before Buying Municipal Bond Insurance

The attraction to owning municipal bonds is twofold, limited exposure to loss and tax advantage interest. Many bond owners also purchase insurance on their bonds to ensure safety and security are part of the equation. With the financial meltdown from 2008, concern over exposure to loss has become more and more important to investors. If you [...]

By | 2018-03-11T00:35:20+00:00 August 30th, 2017|Bonds|

Municipal Bonds: A Smart Move Or A Sucker Bet?

Municipal Bonds can be a terrific vehicle to earn a reasonable rate of interest and at the same time escape taxation on the interest. For many investors who are interested in long term investments with some tax advantages the choice of a municipal bond can be attractive. For investors looking for alternatives to qualified (IRA [...]

By | 2018-03-12T00:14:31+00:00 February 19th, 2016|Bonds|

30 Year Bonds Available Get Them While They Are Hot

Our low interest rate environment may offer opportunity for long term bond investors, or does it? In a recent Bloomberg article regarding recent and large bond offerings, I couldn’t help but notice the mammoth size sale recently sold to fund VISA and their acquisition of VISA Europe. In the scheme of thing, it seems like [...]

By | 2018-01-12T04:54:43+00:00 January 6th, 2016|Annuities, Bonds|

What Happens To Bonds and Annuities If Interest Rates Rise

Just a simple rate movement over time of 3% (3.25% discount rate) would reduce the actual value of all inforce US Treasuries by as much as 40% of their market value. Think what would happen if interest rates went even higher? Disaster would loom and trillions of dollars would evaporate if these assets were liquidated. Of course there would be a winner: the US Taxpayer. Treasuries would be replaced with a higher earning interest rate bond, but at a far less value a third of its market value of the original bond.

By | 2015-05-21T20:25:21+00:00 May 8th, 2015|Annuities, Bonds|

Outsource The Liability

We are now facing an economic situation similar to about 20 years ago, and I know from experience that you’re not going to like what’s about to happen to you and your important money.

By | 2015-05-21T03:33:19+00:00 October 13th, 2014|Annuities, Bonds|

Look Before You Leap Into Corporate Bonds

Considering using bonds for investing in your retirement account? Before you make any commitments, take time to understand exactly how cooperate bonds work, the benefits they offer and the restrictions associated with them.

By | 2015-05-21T04:37:05+00:00 July 21st, 2014|Bonds|