NOW WHAT DID YOU DO

Did you DO something? Make a bad choice? A poor Decision? Surely you did SOMETHING to cause your mutual funds, stocks, or 401K to lose value! As I write this, the market has dropped over 1000 points. Why? Something out of our control happened: the Corona Virus became a pandemic. You didn’t have anything to [...]

US Treasury EE Saving Bonds: Good Idea Or A Stinker Idea?

Buying a US Treasury EE Bond can be a great idea if you want your funds held long term and have no need for the funds prior to their 20 year maturity. EE Bonds offer fixed interest rates for the life of the bond. The maturity period for EE Bonds is 20 years, if you redeem the bond in the first 5 years of ownership, there is a penalty affixed. EE Bonds offer safety, market yield and tax deferred interest compounding.

By |2020-04-15T20:58:54+00:00February 11th, 2020|Bonds|

Is Investing In Bond Mutual Funds A Good Idea? Let’s Look at The Disadvantages

Look before you leap when it comes to bond mutual funds. Bond funds are similar to stock mutual funds in that they are pooled investments under the control of a fund manager who makes investment decisions. The most significant difference between the two is that a bond fund contains a selection of bonds, rather than [...]

By |2020-04-14T00:06:41+00:00July 1st, 2019|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 |2020-04-16T18:27:06+00:00May 8th, 2019|Annuities, 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 critical to investors. If [...]

By |2020-04-15T21:16:03+00:00February 4th, 2019|Bonds|

Are Municipal Bonds Really Tax Free?

Are municipal bonds tax-free?  Might want to make sure. 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 [...]

By |2020-04-13T18:37:26+00:00February 2nd, 2019|Bonds|