Bonds are a type of investment. When you buy a bond, you are lending money to a company or government. The entity that borrows the money agrees to pay you back the money you lent, plus interest.
Learn more about bonds from our financial advisors below.
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.
Using golf as an example makes bonds easy to understand and relate to.
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 […]
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 […]
Are Municipal Bonds Really Income Tax Free? Overview Of Municipal Bonds Municipal bonds (also known as “munis”) are attractive to many investors because the interest income is exempt from federal income tax and in many cases, state and local taxes as well. Also, munis often represent investments in state and local government projects that have […]
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